September 20, 2006

Brazil may import 7 million tonnes of wheat

Brazil would have to import some seven million tonnes of wheat this year, said Luis Martins, spokesperson of the Brazilian Association of Wheat Manufacturers (Abitrigo).

With current consumption at 10 million tonnes a year, and a 3 million-tonne forecast for this year's crop, Brazil would have to source for wheat, most probably in Argentina.

Brazil currently imports some five million tonnes of wheat a year from Argentina.

However, as Argentina also exports to other countries, it is unlikely to sell such a huge volume to Brazil this year.

This means that Brazilian importers has to buy it from other countries and pay an import tariff, which would cause domestic wheat prices to rise. Brazilian laws waive the tariff for imports from Argentina.

Importer organisations and wheat users have been appealing to the Agriculture Ministry for two months to end tariffs levied on wheat imports.