The reduction to zero of the corn import rate by the end of the year does not find justification in relation to domestic supply problems, since the Brazilian grain harvest 2021/22 should be close to 120 million tons, a growth of more than 30% over the previous cycle. This is what highlights the Brazilian Association of Corn Producers (Abramilho).

According to the institutional president of the entity, Cesario Ramalho, as a measure to control inflation, the exemption has a palliative nature, especially because it is temporary, being still one of the last resources of the government to try to contain the rise in prices, given the lack of public policies that promote economic balance.

"The rise in agricultural commodities is a global phenomenon, anchored in market fundamentals [logistical disarrangements caused by the pandemic, rising international demand, impacts of the war in Eastern Europe, an important region producing corn and wheat], variables outside the purview of the Brazilian producer."

According to Ramalho, measures such as these, adopted abruptly, accentuate the scenario of unpredictability for the productive sector, interfere in contracts, cause insecurity, impair decisions made and delay future. "The fact is that the country's environment of uncertainty does not cooperate, on the contrary, to reduce inflationary pressure."

Source: Canal Rural