Government considered restricting exports to curb the rise in domestic food prices

Faced with food inflation and falling popularity of President Luiz Inácio Lula da Silva, the government considered restricting agricultural exports to contain rising food prices, according to Valor. However, after negative reactions, officials indicated to the private sector that the idea will not be implemented. The proposal was discussed at the ministerial meeting on Monday the 24th and included restrictions on agricultural exports, as well as taxes on production destined for external markets. The goal would be to increase domestic supply and reduce prices. The measure, however, faces resistance because it would limit the government’s room for maneuver amid growing domestic consumption and the interest of producers in exporting, driven by the opening of external markets and the current exchange rate.