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Brazil zeroes corn and soy import tax ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀

Posted by Rafael Moro

The Executive Management Committee (Gecex), of the Chamber of Foreign Trade (Camex), decided to zero the import tax on corn and soybeans. The measure seeks to maintain the balance of supply of these products in the foreign market.

The temporary suspension of the import tax for soybeans (grain, bran and soybean oil) will be valid until January 15, 2021. As for corn, Brazilian imports without tax will go until March 31, 2021. The establishment of these dates does not aim to compromise the commercialization of the next harvest, which has the harvest scheduled for the beginning of next year.

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The increase in world demand for food, caused by the occurrence of the Covid-19 pandemic, increased the domestic consumption of corn to supply the production of animal protein, which registered growth in exports. Movement that has been registered in the last two decades, at a rate of 14.3% per year. In the case of soybeans and derivatives, such as bran and oil, there was also an increase in foreign sales, which gained momentum with the appreciation of the dollar.

The Ministry of Agriculture says there is no risk of product shortages. "Due to these factors, it was convenient to seek a preventive measure, in order to equalize the import conditions of third countries with Mercosur, strengthening the supply of the domestic market", says the Director of Marketing and Supply, Sílvio Farnese.

On September 9, Camex zeroed the import tax rate for paddy and processed rice until December 31 of this year, following a request from the Ministry of Agriculture. In this case, the temporary reduction is restricted to a quota of 400 thousand tons. By the beginning of the month, Brazil had already negotiated 225 thousand tons of rice from the United States, India and Guyana, which are expected to enter the country by November. In the case of corn and soybeans, there was no definition of import quota.

Source: Agrolink