Conab announces R$300 million for rice producers in the 2025/26 harvest

The National Supply Company (Conab) announced the allocation of an additional R$300 million for rice purchases , with the aim of "signaling fairer prices to the market for producers." The funds will be used to secure contracts for approximately 200,000 tons of rice from the 2025/2026 harvest.

The announcement was made by Conab president Edegar Pretto on Monday, the 1st, during an agricultural event in Esteio, Rio Grande do Sul. According to him, the Put Option Contract (COV) mechanism acts as a price insurance for producers.

"It is the helping hand of the federal government signaling, even before sowing, the option to sell at a price that makes rice cultivation economically viable, allowing the producer to plan their crop, with the security of receiving adequate remuneration when selling the product," he said in a statement released by Conab.

The company explains that, in practice, those who join the COV guarantee the right, but not the obligation, to sell rice to the federal government at a previously set price, which aims to stimulate production . If the market offers a more advantageous price at the time of sale, the producer can choose not to execute the contract with Conab, at no additional cost, and take advantage of the better price.

If he chooses to sell to the government, the rice will go to public stocks, used by Conab to supply the population in crisis or emergency situations, in addition to avoiding sudden price fluctuations for the consumer.

The details of the new operation, such as the prices to be paid to producers, the negotiation dates and the expiration of the contracts, are yet to be defined and published in an interministerial ordinance and Conab notices.

Third round

This is the third round of COV launched by Conab in support of rice producers in less than a year, with the mobilization of resources, so far, in the order of R$ 1.5 billion.

By the end of 2024, the state-owned company had already announced nearly R$1 billion in option contracts, totaling up to 500,000 tons of the 2024/2025 harvest. In a preemptive move, with Conab anticipating a scenario of abundant supply, the state-owned company signaled a price above R$87 per 50-kilogram bag of paddy rice. At that time, 91,000 tons were traded, and some has already been incorporated into public stocks.

In June of this year, the company launched a second round of COV due to falling prices for the current harvest. Between October 2024 and June 2025, the state market average fell more than 42%, reaching R$65.46 for a 50-kilo bag.

In this second round, the prices signaled by the government were around R$74. There was a high level of participation and almost 100% of the contracts were sold, which is equivalent to 109.2 thousand tons.