Aprosoja reinforces position against freight pricing

The Association of Soy and Corn Producers of Mato Grosso (Aprosoja) reinforces its position against freight pricing. The entity signs, alongside 39 other institutions in the sector, a note published this Monday morning (09) by the Instituto Pensar Agro (IPA).

According to the document, the sector is absolutely opposed to freight pricing and shows great indignation with the Federal Government's attempt to approve Provisional Measure (MP) 832, which establishes a minimum price for road freight, through maneuvers in the National Congress. The Joint Committee approved the text of the MP last Wednesday (04). 
 
Furthermore, according to the note, the figures on the impacts of the tabulation already in force since May 30th on inflation rates are clear proof of the error that this measure represents. The June IPC Fipe for the food sector was 3,14%, whereas in April it had been negative at -0,10%. In the transport sector, the IPC in June was 1,01%, having been 0,05% in April. IBGE's IPCA-15 brought rates of 1,57% and 1,95% for the food and transport sectors, respectively. Remembering that in April these rates were below 0,2%. 
 
“One cannot underestimate such impacts on Brazilian inflation control, nor can it be said lightly that inflationary adjustments have already occurred and are a thing of the past. Considering that the provisional measure establishes that prices will be reviewed every six months and, if there is no publication of a new table, it will be corrected upwards by the IPCA, making it clear that the freight price will have a permanent and inertial inflationary impact”, states an excerpt from the Ipa note . 
 
The text also warns about the current corn harvest and the future soybean harvest, 2018/2019. “The worst is yet to come. The 2018/19 grain harvest needs to be planted, due to a climate calendar, between September and November this year. A harvest of more than 200 million tons cannot be produced without fertilizers. Freight pricing has not only prevented rural producers from purchasing fertilizers on the correct schedule, but is also imposing much higher costs. The crop to be harvested in 2019 will have much higher production costs, which will put pressure on food prices. Furthermore, from the perspective of higher costs and inability to acquire the necessary fertilizer, production will fall.”
 
To read the note in full, click here