(MENAFN- The Rio Times) Brazil is on track for another bumper year in soy and corn, yet rice-the staple that anchors the dinner table-has tipped into a profitability crunch. Nowhere is the strain clearer than in Rio Grande do Sul, which grows most of the country's crop.

Many farmers there are trimming planted area after cash prices slid below production costs, a gap widened by expensive inputs, flood-damaged finances, and uneven logistics.

The paradox is stark: record grain abundance alongside a staple crop that no longer pays its own bills. Producers describe a simple math problem.

Farmgate prices have drifted toward the high-50s per 50-kg sack while fully loaded costs can run far higher, forcing cutbacks in fertilizer and technology to preserve cash.

After several harsh seasons-multiple droughts followed by catastrophic flooding-balance sheets are thin and risk tolerance lower. Plantings are proceeding, but on fewer hectares than last year.



Trade flows add another twist. Brazil ships rice when domestic supply exceeds demand and imports from Mercosur neighbors when regional gaps appear.

That two-way traffic can work well in normal years, but it leaves producers exposed when local prices sag while port and freight costs stay elevated. Government stockbuilding and purchase options may cushion the fall in the short term.
Brazil Tackles Rice Supply with Market Discipline and Infrastructure
Yet the long-term fix still looks like better logistics, faster clearance at ports, and rule stability that rewards efficiency rather than paperwork. Industry is doing its part to lift consumption and diversify revenue.

A national campaign is nudging households to keep rice at the center of the plate, while mills monetize byproducts-husks for thermal power generation, bran for biodiesel, and broken rice for emerging cereal-ethanol plants. Those side markets won't replace fair prices, but they help.

Why this matters beyond Brazil: rice sits at the heart of the basic food basket, and the country's success or failure in keeping it viable influences food inflation, import needs, and regional supplies from West Africa to the Andes.

The clearest path out of the squeeze runs through market signals, resilient farm finance, and infrastructure that lets competitive producers profit without depending on emergency fixes.

MENAFN12112025007421016031ID1110332029