The Brazilian Confederation of Agriculture and Livestock (CNA) has requested the Ministry of Finance to issue an emergency decree granting a 100% discount on the rates of the Additional Freight for the Renewal of the Merchant Marine (AFRMM), levied on waterborne transport. In a letter sent to Minister Fernando Haddad on Tuesday (17), the president of the CNA, João Martins, justifies the measure in view of the increase in prices of nitrogen fertilizers imported by Brazil for use in agriculture, such as urea, which has seen a 35% price increase, with the escalation of the conflict in the Middle East. Currently, the AFRMM has rates of 8% on long-distance navigation, cabotage, river and lake navigation for the transport of cargo throughout Brazil, and 40% for liquid bulk destined for the North and Northeast regions. "This structure generates significant impacts on national logistics costs, especially on the import of fertilizers essential to agricultural production," emphasizes the CNA. Imports account for 90% of fertilizers consumed in Brazil. In its official statement, the CNA (National Confederation of Agriculture and Livestock) explains that a significant portion of the AFRMM (Additional Freight for Renewal of the Merchant Marine) revenue comes from fertilizer imports, mostly handled through ports in the South and Southeast regions. According to the organization, rising prices tend to further pressure production costs and, consequently, food prices in the country. In this context, "the proposed measure is of an emergency and strategic nature, being fundamental to mitigating the effects of external shocks on the Brazilian economy, especially in a sector responsible for a significant portion of GDP, exports, and the generation of employment and income," concludes the CNA.
This text was translated by machine from Brazilian Portuguese.