Assembly approves use of fee to support rice producers.

The Legislative Assembly of Rio Grande do Sul approved bill 472/2025, which authorizes the use of the Rice Farming Cooperation and Defense Tax (CDO) as an instrument to directly support the rice production chain. The measure amends the legislation of the Rio Grande do Sul Rice Institute (Irga) and addresses a long-standing demand from the sector.

The CDO tax applies to producers and processors of paddy rice in the state. Until now, the funds collected were only used to finance the institutional structure of Irga (Rio Grande do Sul Rice Institute). With the new law, the resources can be used for emergency actions and direct incentives for production.

The sector is going through a serious crisis, with falling prices, a reduction in planted area, high inventories, and rising costs. The pressure on producers' income has led entities such as Federarroz and Farsul to coordinate the proposal with the Legislative Assembly and the state government.

The legal director of Federarroz, Anderson Belloli, attended the vote and celebrated the approval. He highlighted the work of representatives such as Frederico Antunes and Marcus Vinícius. According to him, the measure comes "at an important moment and in the face of a critical situation in the sector."

Luís Fernando Pires, advisor to the president of Farsul, also praised the joint development of the project. He stated that the unanimous vote demonstrates that the parliamentarians understood the gravity of the situation. He also thanked the state government for supporting the proposal.

It is projected that approximately R$ 38 million will be allocated to these actions. Around R$ 20 million will go towards bonuses for export sales and distribution. Another R$ 18 million will serve as aid to producers affected by adverse weather events.