Fertilizers: Brazilian chancellor wants to ease US sanctions to expand trade with Iran

The Brazilian Senate discussed, on March 24, the impacts of the war between Russia and Ukraine on Brazil. One of the topics raised was the issue of fertilizers. Foreign Minister Carlos França, who participated in the debate, said that he is looking for a way with the United States to increase Brazilian imports from Iran to avoid possible fertilizer shortages.

Iran is currently subject to US sanctions. However, a waiver mechanism of contractual clauses could pave the way for these exclusions to be relaxed.

Wheat in debate

In addition to fertilizers, the Senate discussed the impacts of the conflict on the wheat market. Prices skyrocketed without Russia and Ukraine among global cereal players. As a result, staple food items like bread and past have also gone through price increases.

The Minister of Agriculture, Livestock and Supply (Mapa), Tereza Cristina, said that resources provided for in the 2021-22 Harvest Plan could help regulate domestic wheat prices. According to her, there is a plan to expand the planting area in Brazil, but funds must be released quickly because the sowing season begins soon.

“We’ve been working hard to increase Brazilian wheat supply. And it’s working so well that wheat is now being planted as a second crop. Soybeans are planted first, followed by wheat, just as corn and soybeans are. It is a wintertime culture. We know that farmers are considering increasing wheat crops, so the time is right for the 2021-22 Harvest Plan. That is why Bill PLN 1/2022 concerns us. Our main concern is that the planting season begins in April. Agriculture is not a patient industry. There is a season for planting and harvesting. That is where we are concentrating our efforts,” commented the head of Mapa.

Voting on sight

The National Congress Bill PLN 1/2022 paves the way for resuming the 2021/22 Harvest Plan. The resources for the agricultural incentive program ended at the beginning of the year. The proposal allocates another R$ 869 million for the end of the plan, which runs until June 30.

This proposal needs to be voted on by Congress, and it has not yet been approved by the Joint Commission on Plans, Public Budgets, and Inspection. At the end of the debate, the then president of the Senate session, Senator Rose de Freitas (MDB-ES), signaled that the vote on PLN 1/22 should take place next Tuesday (29).

Source: Canal Rural

To read the full original article, please go to: https://www.canalrural.com.br/noticias/agricultura/fertilizantes-chanceler-brasileiro-quer-flexibilizar-sancoes-dos-eua-para-ampliar-comercio-com-ira/

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