Federarroz points to exports as a way out of the sector's crisis

The Federation of Rice Growers' Associations of Rio Grande do Sul (Federarroz) expresses concern about the current situation in the sector, a context of overproduction and consequent low prices for producers, which has made the activity unviable in many cases. In this regard, the organization proposes several measures to producers, as well as demands made of the federal and state governments.

With a focus on increasing exports and reducing the planted area in the next harvest due to the excess product offered to the domestic market, the president of Federarroz, Denis Nunes (in the photo), reinforces the worrying situation experienced by the sector.

“Rice carryover stocks are high, a result of the robust harvest in Brazil and Mercosur and domestic demand that is not keeping pace with production,” he warns.

According to Nunes, this excess supply is pushing prices down to levels well below production costs. "Producers are selling at a loss, which jeopardizes the sustainability of the activity. The logic is clear: the larger the inventories, the lower the prices," he emphasizes.

Area reduction

The director highlights the reduction of planted area in the 2025/2026 harvest as a priority, in addition to focusing on exports to countries where Brazilian grain is more valued as an alternative to fairer remuneration for producers. "Without coordinated measures, there is a risk of discouraging production, which could compromise food security in the medium term," he predicts.

In addition to reducing the planted area for the next harvest and placing a greater focus on exports, Federarroz proposes that the federal government monitor rice imports that do not comply with Brazilian phytosanitary legislation. Furthermore, it requires competing markets to comply with the same labor and environmental regulations as Brazilian producers, as well as raising the minimum price in line with production costs.

Regarding the state government, the entity reinforces the use of the Rice Cooperation and Defense (CDO) fee for market flow and changes to the ICMS tax regime, seeking equalization with other states. Finally, Federarroz has been supporting campaigns to encourage rice consumption and providing ongoing guidance to associated producers.