Brazil tries to extend and expand its rice export quota to Mexico

In the week in which the vessel Ocean Love, negotiated by TRC/Rice Brazil, left with 32,000 tons of paddy rice for Mexico, there is intense movement from foreign policy, sector authorities, and companies interested in the Mexicans to extend the exemption from the fees granted to Brazilian grain for the calendar year 2021, at least until February 28th. The demand has already been presented to Mexican government representatives in Brazil and also directly to Mexico’s Ministry of Agriculture. The intention is for the Mexicans to extend the tax exemption until February 28 – the end of the agricultural year – and, with that, producers from Rio Grande do Sul can ship another 43,000 tons of paddy rice by then.

It isn’t the fees that are the biggest complication, but the health restrictions that Mexico imposes. The Hispanic country requires fumigation with a product that is prohibited for purging a cargo of grain in the holds of ships in Brazil and won’t approve the fumigation product used in Brazilian ports. The measure, however, only exists when Mexico does not need rice or the Brazilians need to compete in that market. When there is demand, the Mexican government drops the requirement. In 2020, the Mexicans authorized the purchase of 75,000 tons of rice in Brazil – based on husk –  free of fees and under special conditions. As Brazil only exported 32,000 tons and there is no time for new shipments until December 31, the established deadline, 43,00 tons remain.

Source: Planet Rice

To read the complete original article, access the link: https://planetaarroz.com.br/brasil-tenta-prorrogar-e-ampliar-cota-de-exportacao-de-arroz-com-destino-ao-mexico/

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