Brazil’s rice growers achieved a record-breaking crop this year, around 13.3 millions tons, according to data from the National Supply Company (Conab). Last year’s harvest came to 12.8 million tons.
Consumption this year, according to the Conab, is expected to reach 12.9 tons. If this estimate proves correct, Brazil’s rice surplus will amount to over 400 thousand tons, which could cause a significant break in prices, as well as wasted production.
The National Monetary Council (CMN) is trying to circumvent this problem. Last week the council authorized the postponement of debt payments due in July and August on loans to cover operating expenses. The measure extends these payments to March and April of 2006.
Data from the Ministry of Agriculture indicate that the measure involves approximately US$ 855 million (R$ 2 billion) in debts on agricultural loans.