The vice-president of the Republic and minister of Development, Industry, Commerce and Services, Geraldo Alckmin, said this Friday (24), in São Paulo, that the record harvest expected for this year and the fall of the dollar should cause a reduction in food prices.
The expectation for this year is that the grain harvest grows around 8.2%according to projections from the National Supply Company (Conab). If confirmed, according to Conab, it will be a record for production in the historical series.
The dollar has fallen in recent days, going from R$6.20 at the beginning of the year to around R$5.88.
“Good news is the agricultural harvest. Studies show that the climate this year should be positive. Last year, we had a very intense drought. With good weather, there is an expectation that the agricultural harvest should grow by 8% more, a record harvest. This helps to reduce the price. The other is the dollar, because you have fertilizer, fuel, equipment, a lot of things that are contaminated by the dollar. So, with the reduction in the dollar, it will also help”, he assesses.
For Alckmin, other factors that should help reduce food prices are tax reform and Conab’s regulatory stock.
“The buffer stock is when I have a large harvest and a little is saved, for when there is no stock left. This regulates it a little, avoiding large price fluctuations. There are other studies that the government is carrying out, let’s wait, but the initiative is positive. And the good news is the tax reform, which will relieve the basic food basket, including animal protein”, he explained.
Alckmin participated in a meeting with trade unionists at the headquarters of the General Union of Workers (UGT) to discuss the federal government’s strategies and public policies aimed at economic development and job creation in the country. The theme of the meeting was Economic and Employment Outlook in 2025.
Meeting
While the minister met with trade unionists in São Paulo, President Luiz Inácio Lula da Silva met with some ministers, in Brasília, to discuss strategies that could help reduce food prices.
“President Lula, correctly, is concerned about reducing prices, avoiding large food price increases,” said Alckmin.
