Brazil plans to purchase 445,000 metric tons of rice, corn, and beans to increase food stocks and combat inflation. The government also reduced import tariffs on food items, but analysts find this move ineffective. President Lula’s popularity is declining as food prices continue to rise, with a budget of 350 million reais allocated for grain purchases by Conab.
The Brazilian government plans to purchase 445,000 metric tons of rice, corn, and beans this year in an effort to boost food stocks and combat persistent inflation, as reported by Valor Economico. This strategy represents a significant policy shift, highlighting the administration’s challenges in curbing inflation rates.
Last week, the government also reduced import tariffs on select food items in an attempt to control escalating food prices; however, some analysts deem this move ineffective. As inflation continues to concern citizens, President Luiz Inacio Lula da Silva’s popularity has seen a noticeable decline.
As part of this initiative, the crop agency Conab will be allocated an additional budget of 350 million reais (approximately $60.35 million) this year for grain purchases, as per Edegar Pretto, president of Conab. Currently, Conab has not provided further comments regarding specific volumes related to this initiative.
According to the Brazilian Institute of Geography and Statistics (IBGE), food and beverage prices increased by approximately 8% throughout 2024, with January showing nearly a 1% rise—marking five consecutive months of price increases. February’s figures are scheduled to be released on Wednesday.
The Brazilian government’s strategy to acquire significant amounts of staple foods reveals a clear attempt to address ongoing inflation issues. This marks a shift in policy direction, coupled with tariff reductions, though analysts question their efficacy. As food prices rise, the administration faces growing public dissatisfaction, necessitating continued attention to food supply and economic stability.
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