The MDA (Ministry of Agrarian and Family Development) requested a budget reinforcement of R$50 million in extraordinary credit to support cooperatives and associations in the sector affected by the .
According to information obtained by Sheetthe request was sent to the MPO (Ministry of Planning and Budget), responsible for analyzing the request and authorizing the transfer of the federal budget. In a note, the MPO declared that it “does not comment on any ongoing credit requests”.
Of the total requested, R$30 million would be applied immediately to help producers of honey, Brazil nuts and cashew nuts — sectors that, according to the MDA, are among the hardest hit by the tariffs imposed by the American president.
Small orange producers would also be reached by the resource, despite the fruit having escaped the 50% surcharge, being subject to the 10% tariff.
The measure proposes that aid be provided through the PAA (Food Acquisition Program). Created in 2023, this public program provides for the purchase of family farming products by Conab (National Supply Company) to build stocks and support social programs to combat hunger.
The request is based on economic consequences already felt by producers, with a drop in exports. The honey sector, which sells a large part of its production to the USA, estimates a drop of up to 40% in exported volume on August 6th.
A similar situation affects the Brazil nut chains, typical of the Amazon, and cashew nuts, more concentrated in the Northeast, especially in the states of Ceará, Piauí and Rio Grande do Norte.
More than 70% of the national production of these three products comes from family farming and extractivism, hence the concern about the social impact. According to the ministry, the measure can prevent a collapse in domestic prices and the loss of income for around 18 thousand families working in the production chain.
With the increase in tariffs, products became less competitive on the international market, leading to the accumulation of inventories and a drop in cooperatives’ revenues. The government fears that, without emergency support, small producers will default, abandon their activity or be forced to sell their production for below cost.
The remaining R$20 million would be used in other modalities of the Food Acquisition Program, such as “purchase with simultaneous donation”, which acquires food for donation to charitable institutions.
The request comes up against a worrying fiscal scenario. The. The request for R$50 million would be an extraordinary credit to be released by the National Treasury, that is, outside the department’s regular budget.
The MDA argues, however, that the fiscal cost is low given the social impact that the initiative can generate, avoiding rural unemployment and the disruption of production in already vulnerable regions.
Minister Paulo Teixeira confirmed the plan to Sheet. “After the news that the United States finally agrees to open negotiations, we hope that tariffs will fall through diplomatic channels. But in the meantime, President Lula’s government is working together to prevent our producers from incurring losses,” he stated.
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