Federarroz denounces practices that harm rice producers

The Federation of Rice Growers Associations of Rio Grande do Sul (Federarroz), through its Legal Department, led by the legal director, Anderson Belloli, reported in a note published on its website that the entity's board of directors approved, unanimously, in a meeting held on January 11, 2018, that the federation must adopt all applicable measures aimed at repelling the occurrence of possible abuses of economic power against rice producers and, also, the protection of consumers.

Federarroz must present to the State Public Prosecutor's Office, without prejudice to other competent authorities, possible non-compliances, such as, for example, abusive interest rates incurred in financing contracts carried out by the industrial sector directly to rice producers in the State with the aim of paying agricultural production, as there are judicial precedents reducing the charges charged to rural producers, so that rice farmers may even individually adopt legal measures with this intention.

The entity's board of directors also unanimously approved that the discounts made by the industrial sector upon receipt and billing relating to the classification concerning the identity and quality requirements of fresh rice received from rice farmers in Rio Grande do Sul should be brought to the attention of public authorities. , insofar as, unless there is better judgement, the percentages of production subject to the aforementioned discounts by the industrial sector possibly exceed the limits of legality.

The note also states that the above measures are necessary, given the constant discontent of rice farmers in the State of Rio Grande do Sul, who are in an undoubted condition of economic and financial vulnerability in the aforementioned relationship with the industrial sector, with facts presented to this entity and narrated above could, in theory, constitute infractions against the economic order, as well as the constitutional principles of freedom of initiative, free competition, the social function of property and contracts.

In the end, the entity reiterates its commitment to the free market and trade, as well as the unshakable intention of forming a harmonious and sustainable production chain, from economic, social and environmental aspects, for all its members.

Check the note: http://federarroz.com.br/noticia_detalhe.php?&in=1144