Brazil’s government has removed tariffs on imports of %Rice for the remainder of this year after widespread flooding wiped out domestic supplies of the food staple.
The government in Brazil says the tariff removal will help to prevent acute rice shortages across the country and lessen domestic price increases.
The decision to remove tariffs on rice imports comes after deadly flooding occurred in the Rio Grande do Sul state that accounts for two-thirds (67%) of the country’s domestic rice production.
Brazil had previously slapped tariffs ranging from 9% to 11% on rice imports from other parts of the world. Those tariffs have now been completely removed.
The removal of import tariffs is not sitting well with domestic rice farmers. The country’s rice producer association says that the government’s plan imposes losses on Brazilian farmers and will lead to a reduced crop planting next season.
For its part, Brazil’s government is criticizing local rice farmers, saying they are demanding excessive sums of money for their product and exorbitant compensation following the floods.
However, the government has acknowledged that the extent of the damage to domestic rice crops won’t be known until floodwaters recede, something that’s been delayed by ongoing rain.