Brazil Cuts Import Tariffs to Lower Consumer Prices

In a bid to curb food prices, the Brazilian government announced a series of measures on Thursday, March 6, including the removal of import tariffs on essential items such as coffee, olive oil, sugar, corn, sunflower oil, sardines, biscuits, pasta, and meats.

The measures, unveiled by Vice President and Minister of Development, Industry, Trade, and Services Geraldo Alckmin, follow a series of meetings with business leaders, farmers, and key players in the production sector. The announcement came after a high-level meeting led by President Luiz Inácio Lula da Silva and attended by ministers Carlos Fávaro (Agriculture), Paulo Teixeira (Agrarian Development and Family Farming), Rui Costa (Chief of Staff), Sidônio Palmeira (Social Communication), and Dario Durigan (Deputy Minister of Finance).

“These measures are designed to lower prices and protect the purchasing power of Brazilian citizens, ensuring a more affordable basic food basket,” Alckmin stated. “At the same time, they will stimulate the production sector and trade. The government is making a deliberate choice to forgo tax revenue in favor of reducing food prices.”

Extension – One of the key regulatory actions is the temporary nationwide extension of the Municipal Inspection Service (SIM) for one year. This allows products that are already certified at the municipal level, such as fluid milk, honey, and eggs, to be sold across the entire country.

“For one year, the SIM certification will be valid nationwide, ensuring that products with no sanitary risks can reach broader markets,” said Agriculture Minister Carlos Fávaro, emphasizing that the move will boost competitiveness for small-scale and family farming operations.

Stockpiling Strategy – As part of the Plano Safra, the government will stimulate the production of staple foods, while the National Supply Company (Conab) will increase strategic stockpiles to regulate market prices.

“A range of staple food products will be subsidized to ensure affordability for Brazilian families,” said Agrarian Development Minister Paulo Teixeira. “Beyond the food basket, we are also identifying agricultural inputs that are crucial for industry and often imported. These will also receive subsidies.”

Key Measures to Reduce Food Prices

Regulatory Actions

• Expansion of Brazil’s Animal-Origin Product Inspection System (SISBI) from 1,500 municipalities to 3,000, allowing certified fluid milk, honey, eggs, and other products to be sold more widely.
• Plano Safra to include incentives for staple food production and winter crops such as canola and sunflower oil.
• Conab to build up regulatory food stockpiles when prices drop to prevent future volatility.
• State governments encouraged to eliminate ICMS taxes on basic food basket items in states where they still apply.

Trade Policy Measures

1. Import Tariffs Removed

The government has eliminated import duties on the following products:

Olive oil (previously 9%)
Corn (previously 7.2%)
Sunflower oil (previously up to 9%)
Sardines (previously 32%)
Biscuits (previously 16.2%)
Pasta (previously 14.4%)
Coffee (previously 9%)
Meats (previously up to 10.8%)
Sugar (previously up to 14%)

2. Increased Palm Oil Import Quota

The import quota for palm oil will rise from 60,000 to 150,000 tonnes, ensuring a stable supply for the domestic market.

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