April 25, 2008	Friday	Rabi-us-Sani 18, 1429

BRASILIA, April 24: Brazil has temporarily halted its exports of rice to deal with a sharp price increase that is hitting domestic consumers hard, officials said.

The government said it was also digging into its 1.6-million-ton reserve of rice to alleviate price pressure on the staple, which worldwide has become increasingly expensive as consumption grows in Asia, its main market.

The wholesale price for rice in Brazil has been rising around one percent per day, according to officials.

Agriculture Minister Reinhold Stephanes said the export suspension was necessary to guarantee supplies of the grain for Brazilians for the rest of the year.

Brazil is a major rice producer, growing some 12m tons a year.

Most is consumed domestically, with only a small amount around half a ton a year — being sold abroad.

But rice farmers have increasingly been eyeing the export market, which brings in higher returns.

Ricardo Cotta, from Brazil’s Agriculture and Cattle-raisers Confederation, said “we view with preoccupation any sort of intervention against exports” and warned that contracts with foreign buyers “can’t be put into doubt at a moment like this.”

Rice-growers, he added, have been hit by higher production costs in the past few years, and he predicted that this year’s total rice harvest “maybe 6pc bigger than last year.”—AFP