The Brazilian government has announced the elimination of import taxes on essential food products like sugar, coffee, corn and beef.
Vice President Geraldo Alckmin announced the development after meetings with industry representatives and cabinet members. The initiative aims to mitigate food inflation, which has eroded President Luiz Inácio Lula da Silva’s popularity.
Food prices in Brazil increased by 7.69% in 2024, higher than the country’s overall inflation rate of 4.83%. The situation got worse recently as inflation climbed to 4.96% by mid-February 2025.
Brazilian households are affected more by the situation a “food at home” prices increased by 8.23% last year. The government will zero import duties on many products beyond staples.
Pasta, biscuits, olive oil, sunflower oil, and sardines will also be tax-free. Officials will raise the import quota for palm oil to 150,000 metric tons as part of the comprehensive approach.
While making the announcement, Alckmin said: “We reduce import taxes to help lower prices. We’re not replacing domestic production, we’re complementing it.”
Brazil’s currency has depreciated 15.85% against the dollar over the past year and the devaluation increased prices for imported goods and production inputs throughout the supply chain.
Severe droughts connected to El Niño have affected harvests in agricultural regions. These climate disruptions particularly affect fresh produce prices, thereby putting extra pressure on family budgets.
Earlier this year, President Lula identified affordable food as a major priority. He said: “We need cheap food on workers’ tables, because food has been pricey.”
His approval rating has dropped to 24%, the lowest level during his three presidential terms.
Industry representatives have expressed mixed reactions to these interventions. The Sugar Industry Union labelled the measures “natural and appropriate,” noting sugar prices dropped 10% last month.
Also, the government has requested states eliminate their ICMS tax on basic food items. The measures will become effective within days, pending approval from Brazil’s trade body.
