The National Supply Company (Conab) announced the allocation of another R $ 300 million to buy rice, with the objective of “signaling the market fairer prices to the producer”. With the resources, it will be possible to guarantee contracts to approximately 200 thousand tons of grain, of the 2025/2026 crop.
The announcement was made by Conab President Edegar Pretto, on Monday (1st), during an agricultural event in Esteio, Rio Grande do Sul. According to him, the Selling Option Contract Mechanism (CoV) acts as Producer Price Insurance.
“It is the friendly hand of the federal government signaling, even before sowing, the option of sale for a price that economically enables rice cultivation, allowing the producer to be able to plan his crop, with the security that he will have adequate compensation in the commercialization of the product,” he said in a statement released by Conab.
The company explains that, in practice, those who adhere to CoV guarantee the right, not the obligation, to sell rice to the federal government for a previously fixed amount, which aims to stimulate production. If the market offers a more advantageous price at the time of sale of the product, the producer may choose not to execute the contract with Conab, at no additional costs, and take advantage of the best price.
If he chooses to sell to the government, rice will go to public inventories, used by Conab to supply the population in crisis or emergency situations, as well as avoid sudden consumer price fluctuations.
The details of the new operation, such as the prices to be paid to producers, the negotiation and salary dates of contracts, will still be defined and published in Interministerial Ordinance and Conab notices.
>> Follow the channel of Brazil agency on WhatsApp
Third round
This is the third round of Conv launched by Conab in support of rice producers in less than a year, with the mobilization of resources, so far, in the order of $ 1.5 billion.
By the end of 2024, the state -owned company had already announced almost R $ 1 billion in options, totaling up to 500,000 tons of the 2024/2025 crop. In a preventive action, in which Conab predicted an abundant supply scenario, the state -owned company signaled a price above R $ 87 for the bag of 50 kilos of rice in shell. At that time, 91,000 tons have been negotiated and part is already incorporated into public stocks.
In June this year, the company launched a second round of CoV against the drop in prices in the commercialization of the current crop. Between October 2024 and June 2025, the state market average fell more than 42% and reached R $ 65.46 for the 50 -pound bag.
In this second round, the prices signaled by the government were about R $ 74. There was great adhesion and almost 100% of the contracts were sold, which is equivalent to 109.2 thousand tons.
*With information from CONAB
