Conab auction unlocks rice exports in Rio Grande do Sul.

The Federation of Rice Growers Associations of Rio Grande do Sul (Federarroz) assessed the result of the auction of the Equalizing Premium Paid to Rural Producers (Pepro) for rice, held this Tuesday (5/5) by the National Supply Company (Conab), as positive. The operation had 103,405 thousand tons traded, within a total offer of 350,785 thousand tons.

The main demand came from the Western Border region, which sold the entire available volume of 57,505 tons. An additional 20,9 tons were sold in the lot that included Campanha, the Central Region, and the Outer Coastal Plain, as well as 25 tons from Santa Catarina.

According to the president of Federarroz, Denis Dias Nunes, the auction had a favorable outcome because it contributed to the flow of produce. “Federarroz's assessment is that the auction was very good. The Western Border region sold its entire lot. We had a surplus of supply for the Campanha, Central Region, and North Coast regions, which did not utilize the entire volume. But, overall, the auction was a success,” he notes.

The director emphasizes that the action helps at a time when the market was stagnant. "We sold more than 100 tons, along with the 25 tons from Santa Catarina, and this will help with the flow of goods from these regions, which are the largest producers in Brazil, at a time when the market was quite stagnant," he stated.

The entity's assessment is that the result confirmed the usefulness of Pepro, but also showed the need for adjustments in the regional distribution of volumes. The understanding is that part of the supply that was not utilized in certain regions could be directed to areas with greater demand for the mechanism.

According to Nunes, Federarroz is awaiting the publication of a new call for bids to allow this reallocation. "We are still hoping to have a second call for bids so that we can transfer more of the surplus volume from the Campanha, Central, and North Coast regions to the Western Border," he highlighted, adding that the expectation is that the Southern Zone and Inner Coastal Plain will participate in the next call for bids due to market developments in those regions.

Pepro is an instrument of the Minimum Price Guarantee Policy (PGPM) used to support marketing during periods of difference between the market price and the minimum price. In the announcement this Tuesday, Conab (National Supply Company) foresaw the operation for rural producers or cooperatives in Alagoas, Rio Grande do Sul, Santa Catarina, and Sergipe, with rice from the 2025/2026 harvest.