Pepro auction sells 22,7 tons of rice from Rio Grande do Sul.

The rice auction held by the National Supply Company (Conab) this week sold 22,7 tons of the grain from Rio Grande do Sul. The auction, which also included bids from Santa Catarina, reached approximately R$ 3,3 million in premiums and was positively evaluated by the Federation of Rice Growers Associations of Rio Grande do Sul (Federarroz).

The initial offer exceeded 25 tons. In the case of Rio Grande do Sul, the three available lots were fully sold, covering the regions of Fronteira Oeste, Campanha, Central, Outer Coastal Plain, Southern Zone, and Inner Coastal Plain.

The president of Federarroz, Denis Dias Nunes, stated that the result confirms the need to increase the resources allocated to rice farmers. According to him, the auctions help to support prices, which remain below the minimum throughout the state.

Nunes also highlighted that producers are becoming more familiar with this type of operation. “Where there was an auction, there was a premium, and this demonstrates the need for producers to have more opportunities through auctions and also to become familiar with the process. In the first auctions, producers were not yet sufficiently familiar. Now they are becoming more and more integrated and familiar with auction operations through Pepro and PEP,” he stated.

This was the fourth auction of the Equalizing Premium Paid to Rural Producers (Pepro) held by Conab. This modality functions as a subsidy to guarantee that the producer receives the minimum price defined by the government when the market is down, stimulating the flow of production.

The Product Flow Premium (PEP) grants subsidies to buyers who purchase agricultural products directly from rural producers or cooperatives at the established minimum price.