Rice farmers in Rio Grande do Sul are pushing for tax incentives.

Federarroz advocated for the extension of tax incentives for rice during a meeting at the Legislative Assembly in Porto Alegre. The meeting addressed Decree No. 58.296/2025, which provides for presumed ICMS (Value-Added Tax) credits for sales to São Paulo and Minas Gerais.

Representative Marcus Vinícius proposed the meeting. The objective includes avoiding tax distortions and maintaining the competitiveness of products from Rio Grande do Sul. The credit reduces the ICMS tax burden on processed rice. The industry deducts part of the tax and increases its profit margin in other states.

Participants included Federarroz, Irga, Sindarroz, Fearroz, Farsul, Fiergs, the state government, and parliamentarians. The president of Federarroz, Denis Dias Nunes, highlighted the sector's importance in the southern half of the state. The region encompasses approximately 4 million hectares of lowland suitable for irrigated rice cultivation. The industrial hub is among the largest outside of Asia.

Nunes cited the impact on employment and income. Producers reduced planted area due to high costs and low prices. The industry concentrates operations in the southern half of the state, which is in demand for economic development. He defended the incentive as an economic and social measure.

Vice President Roberto Ghigino disputed official estimates regarding the fiscal impact. He pointed to losses already recorded due to decreased acreage and production. Approximately 90 hectares have been removed from cultivation.

Ghigino warned of risks in the production chain. The sector accounts for approximately 24 jobs. The closure of 10% of industries could eliminate 2,4 positions. He stated that recovery would be difficult after the closure of some plants.