Government attributes more expensive food to the climate and expects a drop from April

The government of President Luiz Inácio Lula da Silva (PT) attributed the rise in food prices in recent months to climate issues and expects a reduction from April onwards, according to ministers Paulo Teixeira (Agrarian Development) and Carlos Fávaro (Agriculture ). In February alone, food and beverage inflation was 0.95%.

They met with Lula this Thursday morning (14), at Palácio do Planalto, to discuss reasons and measures to contain the rise in food prices. Also participating in the meeting were ministers Rui Costa (Casa Civil) and Fernando Haddad (Finance), as well as Edegar Pretto, CEO of the National Supply Company (Conab).

Teixeira highlighted that, among the reasons for the increase in prices, are the high temperatures in the Center-West and the floods in the South, which affected production – mainly rice in Rio Grande do Sul – and impacted the final end in supermarkets.

However, he states, producer values ​​have already started to decrease and tend to reach consumers. “All the evidence is that it has already dropped [o preço]there was a decrease in producer prices and there will be an even greater decrease in producer prices”, he pointed out.

Fávaro cited the example of rice, whose price paid to producers fell from R$120 per bag to around R$100. He expressed confidence that in April it will be possible to observe a drop in prices, especially with the advance of the rice harvest, highlighting the importance of wholesalers passing these prices on to the consumer.

“We hope that, as the rice harvest progresses, which we reach 50%, 60% in the next few days, that this price will drop a little more, which is the natural trend. But reinforce that it is important for wholesalers to pass these prices on to the consumer,” he said.

The minister stated that the government will monitor the market, especially wholesalers, and that if the reduction is not passed on to the consumer, it can evaluate measures with the economic team.

The government also intends to adopt measures through the Safra Plan to encourage the production of foods such as rice, beans, wheat, corn and cassava, aiming to bring them closer to consumer centers. To this end, planting will be encouraged in regions close to large centers, such as the Center-West and Northeast, while the National Supply Company (Conab) will guarantee income to producers who choose to grow these foods.

Furthermore, the government began purchasing corn again to help control prices, as Lula had already announced, even during the 2022 electoral campaign, which he intended to do. Fávaro also confirmed that Lula will have regular meetings with agribusiness representatives to discuss issues and demands from the sector.

The first is scheduled for next week and will be with the fruit growing and juice production sector, with the intention of strengthening ties between the government and agribusiness and seeking solutions to the challenges faced by the sector.