"Brazil needs to strengthen Conab to regulate the food market," says Cloviomar Cararine.

247 - In interview with the program good night 247Cloviomar Cararine Pereira, an economist and technician at the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese) in the sub-section of the Unified Federation of Oil Workers (FUP), addressed the escalating food prices and the challenges faced by the government in containing inflation. According to him, the absence of regulatory stocks and financial speculation are determining factors for the price increases, which reinforces the need for an effective public policy to mitigate the impacts of inflation on the population.

Food and fuel inflation

Data analyzed by Dieese confirms that food prices have risen significantly in recent months. "We conduct a monthly survey of the basic food basket in several Brazilian capitals, and it confirmed a significant increase in food prices over the last six months," highlighted Cararine. Among the products that have increased the most in price are coffee, which rose 50% in a year, soybean oil (25%), beef (21%), and milk (16%). Fuels also exerted pressure on inflation, with gasoline registering an 11% increase and ethanol, 20,6%.

Factors driving up prices

According to Cararine, food inflation is directly linked to three main factors: extreme weather conditions, the appreciation of the dollar, and the lack of regulation in the domestic market. "Droughts and extreme rainfall directly affect production. Last year, the rains in Rio Grande do Sul damaged the rice harvest, which had a direct impact on prices," she explained.

Another factor is the devaluation of the real against the dollar, driven by speculative movements and international instability. "Trump's election, the speculative movement at the end of last year, and international conflicts impacted the dollar exchange rate, directly affecting domestic prices," he pointed out. Since many Brazilian products are exported, currency fluctuations impact the availability of items such as soybeans, corn, and meat in the domestic market.

The importance of Conab and regulatory stocks.

Cararine highlighted that the absence of regulatory food stocks exacerbates the situation, making the market more vulnerable to fluctuations in supply and demand. "Brazil had a strong policy of regulatory stocks. The government bought products when the price was low, stored them, and sold them when the price was high to balance the market. Bolsonaro ended that," she denounced.

He argues that replenishing these stocks is essential to stabilize prices and ensure food security. "The government needs to decide where Conab (National Supply Company) will be located – whether in the Ministry of Agriculture or in Agrarian Development – ​​and strengthen it so that it can resume its activities," he stated.

The role of the Central Bank and Petrobras

Cararine also criticized the Central Bank's performance under Roberto Campos Neto, highlighting its inefficiency in controlling the exchange rate. "At the end of last year, the Central Bank did not act to contain the appreciation of the dollar. This directly impacts prices and could have been avoided," he said.

Regarding fuels, the economist highlighted the importance of Petrobras in price regulation. "Petrobras kept diesel prices stable at refineries in 2024, which helped contain inflation. But the problem is that the previous government sold BR Distribuidora and Liquigás, reducing control over final consumer prices," he criticized.

Alternatives to curb rising food prices

The economist emphasized that, despite the adverse scenario, food production in Brazil should increase this year, which could help contain inflation. "We are going to break records in the production of soybeans, corn, and rice. The problem is ensuring that this production is not entirely exported and remains available for the domestic market," he warned.

To that end, he argues that the government should regulate exports of essential products. "It is necessary to establish minimum export quotas to ensure that part of the production supplies the domestic market," he suggested.

Finally, Cararine emphasized that the government needs to resume the State's role in price regulation and food security. "Brazil needs to strengthen Conab, regulate the market, and ensure that state-owned companies act to contain prices. Only with a structured public policy will we be able to reduce the impacts of inflation on the population," she concluded. Watch: