Source: Global Ag Media/The Pig Site, 19 October 2020, photo credit: Amazon.in
Brazil will suspend tariffs on corn and soy imports form countries outside the Mercosur trading bloc until early 2021 in a bid to reduce food prices that are contributing to inflation.
Reuters reports that Brazil’s economic ministry announced the suspension on 17 October.
The decision to remove the tariffs temporarily was taken late on Friday 16 October at a meeting of Gecex, a technical body within the economy ministry, as reported by Reuters.
Soybean meal and soy oil imports will also be exempt along with soy imports until 15 January 2021, while corn imports will cease paying the tariffs until 31 March 2021, the ministry said in a statement.
“Both measures are aimed at containing high prices for food,” the ministry said.
Record high prices for both grains have impacted food prices that are fuelling inflation and squeezing incomes of Brazilians that have already been hit by the coronavirus pandemic. Inflation in August hit its highest in four years for that month, driven by rising fuel and food costs.