April 20, 2021

 

Brazil Agriculture Ministry suspends import duties on soy and corn until end-2021

 


Brazil's Agriculture Ministry has suspended import duties on soy, soybean meal, soybean oil, and corn until the end of this year as the country looks to slow down inflation caused by surging commodities prices globally, Reuters reported.

 

Experts say the ministry's announcement will benefit grains producers in the United States, as Brazilian purchasers had looked to Mercosur producers who are already tariff exempt.

 

Brazil's Chamber of Foreign Commerce (Camex) had authorised the import tax suspension on corn until March 31 and soybean until January 15. The ministry said there was expectation that external prices would stabilise after the previous exemption was announced and that the 2020/21 grain harvest would be sufficient to rebalance supply and demand. Instead, international grains prices increased, adding pressure to domestic prices.

 

The ministry said grains prices domestically kept rising because of high externak demand and continued devaluation of the BRL against the USD."

 

The industry is highly focused on Brazil's second corn crop projections, the bigger of the two annual harvests in the country.

 

The Brazilian Association of Animal Protein (ABPA) earlier this month called on the Agriculture Ministry to support its request for exemption from corn import tariffs and to create mechanisms that provides more predictability to the market.

 

ABPA said its aim was to assist the meat industry to source livestock feed in the event of a issue with Brazil's second corn crop.

 

- Reuters