Conab will promote incentives to support the marketing of oranges in Rio Grande do Sul

The National Supply Company (Conab) will launch orange marketing auctions to support rural producers, cooperatives and product processing industries in Rio Grande do Sul. The incentive will be implemented through the Equalizer Award Paid to Rural Producers (Pepro) and of the Product Outflow Premium (PEP), in order to guarantee the producer the minimum price established for the crop. 

The volume of resources expected to flow the 2022/2023 orange harvest, originating in Rio Grande do Sul, is up to R$7 million, destined for any region of the country. In the case of PEP, the processing industries receive the premium after proving the purchase of oranges at the minimum price and transport to permitted destinations. In Pepro, the prize is offered to the producer or cooperative that sells the product for the difference between the minimum price and the value of the Equalizer Prize collected, in addition to proving the sale under the expected conditions.

The auctions were authorized by an Interministerial Ordinance from the Ministries of Agriculture, Livestock and Supply (Mapa) and Economy, published in the Official Gazette of the Union this Wednesday (14). "The intention is to ensure compliance with the Federal Government's Minimum Price Guarantee Policy (PGPM) for orange producers in Rio Grande do Sul", highlights the interim director of Operations and Supply at Conab, Marcus Morelli.

Conab's monitoring of the prices of agricultural products detected that orange prices were below the minimum value for the crop, established at R$ 24,23/40,8kg. In view of this, compliance with agricultural policy was put into practice, with the aim of guaranteeing a minimum price for the product. These orange operations last took place in 2019, when the value of the product was also below the minimum price in the state.

On the date of the auctions, participants must be registered with the Merchandise Exchange for which they intend to operate, with their registrations updated in Sican (National Registration System for Rural Producers, Public of the Alimenta Brasil Program, Cooperatives, Associations and Other Agents) and in good standing with the Conab Defaulter Registration and Control System (Sircoi), the Unified Supplier Registration System (Sicaf), the Register of Disqualified and Suspended Companies (CEIS), the Federal Treasury and Social Security, among others requirements set out in the Notices.