CDPC technical committee approves R$1,32 billion proposal to assist coffee growers affected by frost

The representatives of the Technical Committee of the Coffee Policy Deliberative Council (CDPC) decided to forward to the CDPC a proposal to maintain R$ 1,32 billion as a contingency reserve in the Funcafé (Coffee Economy Defense Fund) budget to serve producers which suffered from the incidence of frost, mainly occurring in July this year. The decision was taken at a meeting this Friday (6).  

The CDPC meeting will take place next Tuesday, the 10th. If the Council approves, the proposal will be forwarded to the Ministry of Economy to be submitted to the National Monetary Council (CMN), on the 26th.

This value will be made available to financial agents after the effective assessment of losses caused by frost in production regions, the survey of which is being conducted by the National Supply Company (Conab) in conjunction with entities in the coffee sector. “The estimate is that by next September we will already have a real picture of the situation”, predicts the director of the Marketing and Supply Department, Silvio Farnese.

The resources are part of the R$5,9 billion that was approved by the Coffee Policy Deliberative Council for application in Funcafé's financing lines for the 2021/22 harvest. By maintaining this contingency reserve, initially, a total of R$4,6 billion will be made available to financial agents for credit lines for funding, marketing, working capital and coffee acquisition. The contracts are at the end of processing.

“This measure will not cause difficulties for Funcafé credit borrowers since what is being sent to financial agents is sufficient to meet demand until the decision to release the contingency reserve between September and October”, recalled the director.