New minimum wheat prices announced

The update of the minimum prices calculated by the National Supply Company (Conab) for wheat was published this Tuesday (02/05), in the Official Gazette of the Union (DOU). The new values ​​are valid until 2024 and will serve as a reference in operations linked to the Minimum Price Guarantee Policy (PGPM), which aims to guarantee a minimum remuneration for rural producers and also in actions linked to other agricultural policies, including a reference for credit rural.

For the update, the Company suggested as a basis for the calculation methodology for the formation of the minimum price for Type 1 Bread Class PH 78 wheat, the adoption of variable average costs weighted by the planted area as the main correction factor. Premiums or discounts are applied to this proposed value for other classes and types, taking into account factors such as the behavior of productive agents and consumers and the interests of Brazilian government agricultural policy for the sector. The values ​​published in the DOU for Type 1 Bread Class PH 78 wheat were: R$ 87,77 per 60kg bag (South Region); R$ 90,45 per bag/60kg (Southeast Region) and R$ 94,96 per bag/60kg for the Central-West Region and Bahia.

The recomposition of production costs ensures the continuity of the activity for the producer, in addition to stimulating and encouraging planting in regions other than the South of the country, as a strategic issue to expand wheat production in Brazil and to reduce dependence on imports of the product. .

Public policies

Minimum prices are set by the National Monetary Council (CMN), in accordance with the proposal sent by Conab to the Ministry of Agrarian Development and Family Agriculture (MDA). The Company is responsible for preparing proposals relating to products on the PGPM agenda and the Minimum Price Guarantee Policy for Sociobiodiversity Products (PGPM-Bio). According to article 5 of Decree-Law No. 79/1966, minimum price proposals must consider the various factors that influence prices on domestic and foreign markets, and production costs.

Minimum prices are defined before the start of the next harvest and serve to guide the producer regarding the planting decision, in addition to signaling the Federal Government's commitment to purchasing or subsidizing agricultural products, if their market prices are below the minimum prices. settled down.