Brazil
announced a 136 billion Brazilian reals boost its agriculture through
measures on grain storage and a minimum price for cotton, although it
may be sugar producers, which benefit most. Brazil's government Tuesday
unveiled an 18% increase in farm credit available for the 2013-2014
harvest with the aim of raising the country's agricultural production to
new record levels.
The government said it plans to offer 136
billion Brazilian reals (BRLs) in credit over the coming year for
financing farm operations, sales and new investment. With this plan,
we're offering the largest amount of resources and the best financing
conditions ever for the country's farm sector, Agriculture Minister
Antonio Andrade said at an announcement alongside Brazilian President
Dilma Rousseff.
Agriculture Ministry officials said the plan
would extend BRL97.6 billion for operations and commercialization at
average interest rates of 5.5% annually. Additionally, the plan will
extend BRL38.4 billion in financing for farm investment at average
interest rates of between 3.5% and 5%.
With the financing
announced Tuesday, Mr. Andrade said, the government hopes to raise
grains production to 190 million tonnes in the upcoming harvest from 184
million tonnes expected this year. Andrade also announced that the
government planned to offer BRL25 billion in financing over a 5-year
period for increasing private warehousing infrastructure in the country.
Source by Commodity Insights
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