The rise in diesel prices since the beginning of the conflict in the Middle East has already generated an impact of R$7.2 billion for Brazilian agribusiness, according to a survey by Farsul (Rio Grande do Sul Agriculture Federation).
According to the study, which compiles data from February 27th – when a liter of diesel cost R$ 6.13 – until April 10th – when the price of a liter was R$ 7.55 -, for each increase of R$ 0.25 in the liter of fuel, the impact generated on the sector’s costs is R$ 1.3 billion.
Since the beginning of the conflict, the accumulated increase in the liter of diesel is 23%, mainly impacting the . During this period, the production cost of this crop increased by R$355/hectare.
The jump in diesel prices also increased the production costs of rice (R$203.85/ha), cotton (R$80.95/ha), corn 1a saffron (R$ 75.75/ha) and 2a safflower (R$40.33/ha), Wheat (R$47.94/ha) and soybean (R$ 42.74/ha).
In total numbers, these increases represent a significant jump in the total cost of mechanical operations in agribusiness. The most affected sectors were sugar cane (R$ 3.39 billion) and soybeans (R$ 2.06 billion).
These losses also extended to early corn crops harvest (R$ 375.9 million) and second crop (R$732.6 million), rice (R$320.7 million), cotton (R$161.7 million) and wheat (R$113.4 million), totaling one for the entire sector.
The jump in the price of diesel also reflected the rise in the IPCA (0.88%) and food inflation (1.56%) in March. The study also estimates that, if the PPI (Import Parity Price) were maintained, the loss would be even greater, totaling R$11.2 billion for the sector with a liter of diesel R$2.22 more expensive.
Reduction in prices
A proposal is being processed in the National Congress that seeks to mitigate the impacts caused by the conflict in the Middle East on the energy boom through tax waivers.
The project rapporteur, Marussa Boldrin (Republicanos-GO)stated this Tuesday that, if the project is approved, the constitutional norm that guarantees tax advantages for biofuels will be respected. When asked, the deputy did not confirm when the project would be voted on.
*under the supervision of Luciana Franco
