June 14, 2006

Bill in Brazil's congress angers wheat industry

Wheat producers are seeing red over a controversial bill in which 10 percent of all wheat sold in the country must contain at least 10 percent refined manioc meal, manioc shavings or components of manioc tubers.

The bill was first proposed in Congress in 2001 by Deputy Aldo Rebelo (Communist Party of Brazil) but had not been discussed until this year. Now, Rebelo, as president of the Chamber of Deputies, and has set up a special commission which to analyse and have the bill approved. As part of a special commission, the bill can be approved without a vote in the Chamber of Deputies.

Rebelo's bill has got the flour production chain and part of the manioc meal industry up in arms as they interpreted the move as an intervention of the state in production activities.

If the bill is approved, wheat mills in Brazil would have to re-locate to Argentina if they want to produce pure wheat, according to the counselor of the Brazilian Wheat Industry Association (Abitrigo), Lu¨ªs Martins. This would mean that at least 30,000 people in the wheat industry would lose their jobs.