To promote diversification and boost rice production, the Brazilian federal government has set the parameters for implementing Rice Sales Option Contracts (COV) through the National Supply Company (Conab). The decree outlining these directives was signed on Wednesday (October 16) during the launch event of the National Food Supply Plan “Alimento no Prato” (Planaab) and the National Plan for Agroecology and Organic Production (Planapo).
The announcement was made by Paulo Teixeira, Minister of Agrarian Development and Family Agriculture (MDA), at a ceremony at the Palácio do Planalto in honor of World Food Day. President Luiz Inácio Lula da Silva attended the event, along with other key officials, including Ministers Wellington Dias (Development, Social Assistance, Family, and Hunger Alleviation), Carlos Fávaro (Agriculture and Livestock), Marina Silva (Environment and Climate Change), and Márcio Macedo (Secretary-General of the Presidency). Additionally, representatives from the National Council for Food and Nutrition Security (Consea), Conab President Edegar Pretto, and other government and civil society leaders were present.
“Our goal is to ensure economic viability and income for farmers who bring food to our tables daily,” emphasized Edegar Pretto. “Through initiatives like these, Conab will play a critical role in promoting production diversification, ensuring that working families have access to quality food. This marks a new chapter for Conab, focused on guaranteeing food supply, combating hunger, and improving nutrition across Brazil.”
Details of the Rice Option Contracts
Conab will receive around R$1 billion to purchase up to 500,000 tons of long-grain paddy rice (types 1 and 2) from the 2024/25 harvest through public auctions. These contracts offer farmers and cooperatives a way to lock in future prices.
Contracts will have different maturity dates depending on the state:
- Minas Gerais and Paraná: Contracts expire by July 30, 2025.
- Rio Grande do Sul and Santa Catarina: Expire by August 30, 2025.
- Other states: Expire by October 30, 2025.
The Ministry of Agriculture (Mapa) and MDA will coordinate the distribution of these contracts across states. The full decree, signed by MDA, Mapa, and the Ministry of Finance, will be published in the Diário Oficial da União.
“Arroz da Gente” Program
As part of its efforts to stimulate rice production, the government introduced the “Arroz da Gente” program. This initiative aims to revive rice cultivation in areas with historical production, with a focus on Indigenous communities, traditional populations, and family farmers, particularly in Brazil’s Northeast.
The program will begin in 36 territories across 148 municipalities in 17 states, spanning the North, Northeast, Central-West, and Southeast regions. It will provide technical assistance, seed distribution, access to credit, and market guarantees, following agroecological principles and locally adapted technologies.
Strengthening Storage Capacity
Minister Paulo Teixeira also announced a partnership between Conab and Itaipu Binacional to improve grain storage infrastructure. This agreement allocates R$55 million to modernize silos in Paraná and Mato Grosso do Sul. The targeted facilities include warehouses in Ponta Grossa, Cambé, and Rolândia (Paraná) and Maracaju (Mato Grosso do Sul).
Food Acquisition Program (PAA) Initiatives
During the event, the Ministry of Social Development (MDS) announced a public call under the Food Acquisition Program (PAA) to purchase food for donation to community kitchens, with a budget of R$39 million. Additionally, the first collaboration agreements were unveiled, totaling R$30 million, to support the Cozinha Solidária program, which will fund 346 units managed by 23 organizations, ensuring the provision of meals for vulnerable communities.
Source: CONAB. Check more news for Brazil Rice.
