Irga discloses 2020/2021 rice production cost in RS

The production cost for the 2020/2021 harvest was concluded, based on data collected by the Technical Assistance and Rural Extension Centers in the interior of the State. The weighted average cost for producing a 50-kilo bag of paddy rice in this harvest in RS was R$72,73. The cost per hectare was R$ 11.567,74, considering an average productivity of 7.952,50 kg/ha - 159,05 bags/ha (RS average - three harvests).

The methodology used by the Instituto Rio Grandense do Arroz was the same as in previous years, with part of this cost also serving as the basis for compensation for hail, in accordance with the State Decree that regulates this coverage. The changes in relation to the cost of the previous harvest (2019/2020) occurred more in items indexed to the price of rice.

In relation to the last harvest, the cost per cultivated hectare increased by 14,78% this year. Last year, the survey revealed the cost at R$10.078,00 per hectare, with an average productivity of 155,77 bags/ha (average RS - three harvests).

Irga's commercial director, however, warns of the increase that will occur in the cost of the 2021/2022 harvest, already visible, not yet calculated, but in the initial study phase. “Despite the producer’s need to sell to meet their commitments, care must be taken when selling, as a way of not compromising the harvest we are starting. Furthermore, in the next planting we must observe important aspects in a scenario of price uncertainty, such as areas with greater suitability for cultivation, free of red rice, carefully assess water availability and other aspects, in order to minimize risks, if eventually we don’t have the desired prices”, adds João Batista Gomes.

Check out the complete survey here.