Published in the Official Gazette of the Union this Tuesday (24), Interministerial Ordinance MPLSA/MF/MPO/MDA nº 38, which defines the parameters for granting economic subsidies, in the form of price equalization, for paddy rice from the 2025/2026 harvest. The subsidy will be operationalized through the payment of the Equalizing Premium Paid to the Rural Producer or their Cooperative (Pepro) and the Premium for Product Flow (PEP), offered in public auctions to be held by the National Supply Company (Conab), within the scope of the Minimum Price Guarantee Policy (PGPM). The amount of resources allocated to the policy is up to R$ 70 million. The minimum prices in effect were set at R$ 63.74 per 50 kg sack for the states of Rio Grande do Sul and Santa Catarina, and at R$ 80.00 per 60 kg sack for the states in the Central-West, Northeast, North, and Southeast regions, as well as for the state of Paraná. Rural producers and rural producer cooperatives may participate in the Pepro auctions. Industries and grain traders may participate in the PEP auctions. :: What are Pepro and PEP? Pepro is an economic subsidy granted to the rural producer or their cooperative that wins the equalization premium in an electronic auction held by Conab. This premium aims to supplement the value received from the sale of a product, so that it reaches the minimum price. In PEP, the buyer, which may be a processing plant or a grain trader, wins the equalization premium in an electronic auction held by Conab and must pay the minimum price to the rural producer. The Minimum Price Guarantee Policy (PGPM) is an important tool for reducing fluctuations in the income of rural producers and ensuring a minimum remuneration, acting as a benchmark for supply, encouraging or discouraging production and guaranteeing the regularity of national supply.
This text was translated by machine from Brazilian Portuguese.