Brazilian govt raises minimum price of cotton

The minimum price for Brazilian cotton has been increased from 44 Brazilian reals to 54 Brazilian reals per arroba (one arroba equals to 15 kg), said President Dilma Rousseff during a visit to the municipality of Lucas do Rio Verde in Mato Grosso.

 

According to a statement issued by the Brazilian Government, President Rousseff was in Lucas do Rio Verde to attend the ceremony to mark the official beginning of the second planting season of the Brazilian harvest period of 2013-14 in the region. 

 

Ms. Rousseff said that the information was to be announced by Brazilian Minister of Agriculture, Livestock and Supply Antonio Andrade, but she wished that she herself should announce the increase in the minimum price of cotton under the Minimum Guarantee Price Policy (PGPM).

 

Neri Gueller, secretary of Agricultural Policy of the Ministry of Agriculture, said the increase in the minimum price of cotton comes after 10 years, as the last raise in the minimum price of cotton was announced during 2003 when the price was fixed at 44 Brazilian reals per arroba.

 

After 10 years of demanding to raise the minimum price of cotton, the cotton growers in the country finally get their wishes owing to the Brazilian President, he added.

 

According to Mr. Gueller, the new minimum price of cotton covers the cost of production of the farmers and has been fixed taking into account the need of Brazilian cotton producers.

 

However, Brazilian Association of Cotton Producers (ABRAPA) president Gilson Pinesso said although the new minimum price of cotton is a jump of 10 Brazilian reals from the earlier price of 44 Brazilian reals per arroba, it still does not cover the cost of production quoted by the National Supply Company (CONAB) at 57 Brazilian reals per arroba.

 

The new minimum price has pleased the cotton producers of the country, but ABRAPA would again appeal to the Federal Government to increase the minimum price of cotton at the rates quoted by CONAB, he added.

 

The PGPM is enforced by the Government to support certain crops, so that when the market prices for such crops fall below the minimum price limit set by the Government, the authorities may implement measures including direct purchase of crops from the farmers as well as financing the storage, through acquisition and loans.