High corn consumption sustains imports to meet domestic demand

The Port of Paranaguá should receive another corn ship from Argentina in the next few days. Corn imports are uncommon, considering that Brazil is a major corn exporter, and are due to the increased demand for domestic consumption and low production this harvest, which made prices soar.

Brazil is the third-largest corn producer, behind the United States and China, but the drought has damaged the national harvest. With the low volume of rain between April and May this year, the Brazilian corn crop is smaller than expected this season.

In the Port of Paraná, the importation of corn destined for animal feed is being operated by Fortesolo. The corn import tax remains suspended by the Ministry of Agriculture until the end of the year to contain prices on the domestic market.

The cargo from the first three ships that reached the coast of Paraná in recent months totaled 102,799 tons of corn.

According to the president of Fortesolo, Marco Ghidini, the expectation is to receive another 35,000 – 40,000 tons of corn in bulk for rural producers for animal feed.

“Brazil has been exporting large quantities of this commodity and, in current times, demand is higher than supply, which required government measures for imports. In this area, Fortesolo is paying attention to economic movements and logistical needs at the Port of Paranaguá”, declares Ghidni.

Tax Exemption

At the end of April, the Ministry of Agriculture and Livestock announced the suspension of the import tax rate for corn. The decision came from GECEX (the executive management committee of CAMEX, the foreign trade chamber).

The suspension of taxes was based on rising prices since “international prices were rising, putting additional pressure on domestic prices”, as explained in the note released by the Ministry.

Source: Comex do Brasil

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https://www.comexdobrasil.com/consumo-em-alta-maintain-importacao-de-milho-para-atender-a-demanda-interna-e-evitar-o-desabastecimento/

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