The Committee on Agriculture, Livestock, Supply and Rural Development of the Chamber of Deputies approved on Tuesday (14) the Inspection and Control Proposal (PFC) 19/2022 on the “significant” increase in the prices of fertilizers and agricultural inputs.
The approval of the proposal appears in the online process of the project in the Chamber and was confirmed, in a note, by the Parliamentary Front of Agriculture (FPA).
According to the proposal, the Commission, with the help of the Federal Court of Accounts (TCU), the Federal Police and the Administrative Council for Economic Defense (Cade), should investigate the increase in fertilizer prices in the country.
The proposal provides for a public hearing with the presence of representatives of the Ministry of Agriculture, fertilizer producers and importers, fertilizer trading companies, rural producers, the Administrative Council for Economic Defense (Cade) and sea ports.
The plan also includes the inspection of a possible practice of cartel formation and manipulation of fertilizer prices.
Subsequently, the report of the commission’s investigation must be forwarded to the plenary of the Chamber.
The text authored by federal deputy Domingos Sávio (PL-MG) says that there are “strong indications” of cartel practice, causing serious damage to rural producers and the national economy.
In the project, the author argues that fertilizer prices have shown “drastic increases” in recent months, which would be a result of the collapse of global supply chains, the rise in the cost of sea freight, the conflict between Russia and Ukraine and the devaluation of the real against the dollar.
“The fear is that the aforementioned scarcity scenario is giving rise to abusive practices, such as the formation of a cartel, with the objective of increasing economic gains”, says the text of the proposal.
The parliamentarian alleges that such practices would significantly increase the costs of inputs, reflected in the final prices of food.
“It is a situation that afflicts rural producers all over Brazil. What we are seeing in terms of rising prices for fertilizers and some essential inputs for agricultural production in Brazil has serious signs of crime,” Sávio said in the vote, adding that “nothing justifies” increases of, for example, 400% for fertilizers containing potassium.
According to the deputy, representatives of the sector were invited by the Front to clarify significant increases in fertilizers, but did not respond about the reason for the increase. “(Profit) exceeded any tolerance limit”, claimed Sávio.
Present at the session, the former minister of Agriculture and federal deputy Tereza Cristina (PP-MS) said that the project is a “super necessary and urgent” initiative.
“Fertilizers today are the villains of production costs. We need to check this rise in prices, which I believe is the problem at the moment. We have to go deeper into this, putting the damage not only for the producer but for the consumer in this adverse moment of inflation, of the dollar, of war”, he said.
“In Canada, prices have already dropped 30%, but here in Brazil the price goes up and does not come back”, said Tereza Cristina, during the vote on the proposal.
come on
The National Association for the Diffusion of Fertilizers (Anda) released a note stating that it has been in contact “with the Executive Branch to inform about the impacts of the conflict between Russia and Ukraine on the increase in prices of agricultural inputs”.
“Anda has also been making an effort to keep all agents (public and private) well informed about the difficulties and challenges of the sector. He emphasizes, now and always, that fertilizer prices are dictated by the international market, by world supply and demand, since we import more than 85% of what we consume and that the scenario was highly impacted by the advent of so-called international sanctions, as well as by the increase in the price of grains.”
Source: CNN Brasil
