Tariff barriers and logistical costs affect Brazil rice shipments

Shipments of paddy rice from Brazil totaled 39,740 tonnes last month, a drop of 54.3% compared to May 2021, according to a statement of the Brazilian Rice Industry Association (Abiarroz) based on data from the Ministry of Economy released on the 22nd. On the other hand, imports grew 9.5% to 105,000 tonnes, and as a result, in May, the country had a deficit of 66,700 tonnes in the product trade balance.

From January to May, on the other hand, the balance is positive at 66.9 thousand tonnes, as a result of the shipments of 557.9 thousand tonnes and imports of 491 thousand.

See below the track record of Brazilian rice exports from January 2021 to April 2022. The data below is courtesy of Datamar’s DataLiner.

Brazilian Rice Exports | Jan 2021 – Apr 2022 | TEUs

Source: DataLiner (click here to request a demo)

According to Carolina Matos, export manager at Abiarroz, the rice sector has suffered from the government’s continual decreases in import tariffs and the rise in international freight prices that have continued since the onset of the covid-19 outbreak.

As a result, she believes the government must take steps to lower the “Brazil cost.” Among her recommendations is eliminating the Funrural tax on processed rice exports, which she claims will provide Brazilian companies parity with imported products.

“Otherwise, the population will start to consume products of worse quality, [which will be] more affordable [due to] the reduction of the import tariff,” she says. “Meanwhile, the national industry will continue to be penalized by the Brazil cost.”

Source: Valor Econômico

To read the full original article, please go to: https://valor.globo.com/agronegocios/noticia/2022/06/22/barreiras-tarifarias-e-custos-logisticos-afetam-embarques-de-arroz.ghtml

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