Brazil Prepares for El Niño by Buying Rice and Corn at Market Prices

The Brazilian government is preparing to purchase rice and corn at market prices to replenish public stockpiles, in anticipation of potential effects from El Niño. According to Agrarian Development Minister Fernanda Machiaveli, the federal government will authorize purchases up to 25% above the minimum price through Federal Government Acquisition (AGF) auctions held by the National Supply Company (Conab). The goal is to make it easier to buy these essential grains at current market prices and ensure their availability to address potential impacts from El Niño.

The government plans to purchase 310,000 tonnes of rice and 180,000 tonnes of corn for public stockpiles. Currently, public inventories hold about 280,000 tonnes of rice, which will increase to nearly 600,000 tonnes after the new purchases, or around 5.2% of Brazil's annual consumption.

The measure is part of a R$1.3 billion package to counter the potential effects of El Niño on Brazil's economy. The Ministry of Agrarian Development also intends to announce new rice purchase-option contracts to encourage planting in the 2026/27 crop year, with funding included in the 2027 budget.