Ensuring Stability in the Rice Market: Government Actions and Future Steps
The Federal Government, through the National Supply Company (Conab), announced on Tuesday (11) the cancellation of the public auction for the purchase of imported parboiled rice, held last Thursday (6), due to concerns about the technical and financial capabilities of the winning companies. The decision was made after a meeting this morning at the Palácio do Planalto.
With the cancellation, the mechanisms for conducting the auction will be reviewed by Conab, with the support of the Attorney General’s Office (AGU) and the Comptroller General’s Office (CGU). Thus, the government seeks to ensure that participating companies have the solidity required for an operation of this magnitude.
“We now understand that the bidding document and the format of this auction need to be improved, and this will be done with the support of the entire government to provide assistance. We will establish mechanisms to evaluate beforehand who will participate, demanding financial capacity from the companies and experience in the field,” said the Minister of Agriculture and Livestock, Carlos Fávaro.
A new process will be carried out for the purchase of the cereal, with no scheduled date yet. The objective is to continue the resumption of the policy of regulatory stocks by the government and thus avoid any speculation in the price of rice, given the difficulties faced by producers in Rio Grande do Sul after a climatic tragedy that struck the state.
“Not a single penny of public money has been spent so far. Legal certainty and care with public money are non-negotiable principles. This is what justifies the decision made,” said the president of Conab, Edegar Pretto.
“President Lula wants rice and other foods at a fair price, one that fits into the salary of the Brazilian people. There will be no backing down from this decision,” explained the Minister of Agrarian Development and Family Farming, Paulo Teixeira.
FAIR PRICE – In total, Conab is authorized to buy up to 1 million tons of rice, but the auctions will be held according to the population’s needs. The product will be sold in regions of the country with the highest food insecurity, in specific packaging, with a maximum value of R$4 per kilogram, ensuring that the final price does not exceed R$20 for a five-kilogram package.
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