APEXBRASIL President argues that food is more expensive due to high interest rates and suggests grain storage
The president of (Brazilian Export and Investment Promotion Agency), he stated that high interest rates in Brazil are responsible for the cost of agricultural production and, consequently, food prices in the country.
The statement was made in an interview with the program Rodfrom TV Cultura, on Monday (24.FEV.2025). He defended the creation of additional policies to reduce the cost of agricultural inputs and allow the offer of cheaper foods for consumers.
“If you have more policies for some products, it will give a feeling to those who need it, the poorest, to have a lower cost in the meat, a lower cost of coffee, lunch and dinner“, These.
Interest as a determining factor
During the conversation, Viana rejected the idea that food exports is primarily responsible for the high price in Brazil and pointed out the cost of credit as a determining factor.
“With interest on the stratosphere, the way it is, with 12%, for a product of a corn producer will be more expensive or cheaper his crop when he is buying equipment, when buying input? It will be more expensive and will come a more expensive product and will arrive at the consumer’s table more expensive”He said.
The President of ApexBrasil defended the expansion of the insurance of the Safra Plan and the creation of differentiated credit lines for essential sectors of food production.
“I argue that the crop plan has to have safer. We have 1 billion of the insurance crop plan, but it has to have 3 because we are experiencing climate crisis, but I also argue that it has a differentiated line of credit for these products. This can go to coffee, you can go to rice, to beans, cassava, flour”He explained.
Criticism of the Central Bank
Viana also criticized the monetary policy adopted by the Central Bank, arguing that the maintenance of the basic interest rate at a high level compromises the country’s productive sector and economy. Despite criticism of the index, he did not cite the name of the institution or that of his current president, Gabriel Galipolo.
“What is the explanation for a country that has controlled inflation – even in 4.5% -, full employment, a heated labor market, social inclusion programs, industry growth and an economic growth 3 times higher than that provided for by Market, maintain the highest interest rate in the world? Honestly, I can’t understand. Interest rates on this level raise the cost of various agribusiness products“, These.
Alternatives to reduce prices
To contain the impacts of food discharge without resorting to price control, Viana defended government actions to balance the offer. He suggested that the government use (National Supply Company) to store strategic foods and stabilize prices.
“I believe this year is still possible that we start to have a [redução nos preços]due to government action. And then there are hours that will have to have quota, it has to come with Conab to store, because Brazil is a very large giant and I think no price control”He concluded.
