The vice president of Brazil’s CNA (Confederação Nacional da Agricultura – National Confederation of Agriculture), Carlos Sperotto, says that the CMN’s (Conselho Monetário Nacional – National Monetary Council) resolution authorizing the postponement of installments of rice growers’ debts until 2006 comes too late.
“The postponement came too late. The producers had already repaid installments and sacrificed the crop, which was sold for less than the prices they hoped for,” he says.
Sperotto also argues that the postponement limited the funds available to pay for the costs of the coming harvest. “This reduces to a minimum the funds available to the sector.”
Last week the CMN authorized the postponement of payments due in July and August on loans to cover agricultural operating expenses.
The measure extends these payments to March and April of 2006. The Central Bank must still regulate the decision for it go into effect.