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Home Increase in the price of diesel is passed on to the value of food, leading to a 10% increase in the Supply Centers

Increase in the price of diesel is passed on to the value of food, leading to a 10% increase in the Supply Centers

20 May 2022 to 22: 49
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price, diesel, food
Image by Alexander Fox | PlaNet Fox by Pixabay

Potatoes, onions and tomatoes are examples of foods whose price is affected by the rise in diesel, which harms the population

In the last week, the value of diesel has increased, which has already had an impact on food prices. According to the president of the Brazilian Association of Supply Centers (Abracen), Eder Eduardo Bublitz, the increase in freight caused a pass-through of about 10% in the prices of fruits and vegetables sold wholesale.
Bublitz exemplified the situation using the route from Curitiba (PR) to Juazeiro (CE), in which a cart that goes up with empty boxes and comes down loaded paid, before, a freight of R$ 7,5 thousand. Currently, however, this freight exceeds R$ 9, making it difficult to find trucks. According to the President of Abracen, it is a freight that ends up costing drivers dearly.
Bublitz also highlighted that the food sector has already been experiencing other difficulties, such as crop failures due to climatic factors and also the rise in food prices. fertilizers, which was affected by the war between Russia and Ukraine.
Furthermore, the increase in the value of diesel also causes effects at the beginning of the production chain, since this is the fuel responsible for fueling tractors and agricultural machinery.
O federal government released this Tuesday (17), one week after the readjustment of diesel, a provisional measure that may lead to a new increase in freight. President Jair Bolsonaro signed an extraordinary review of the sector's minimum floor table.
Prior to the measure, the price was modified at each 10% variation in the fuel. Now the trigger has been reduced to 5%. However, the National Land Transport Agency (ANTT) announced that, for now, the value remains the same, given that the current accumulated change in diesel is 3,26%.

Eder Eduardo Bublitz defends tax relief in order to mitigate the effects of the increase in fuel prices

Although the MP may have an impact on the price of transporting food, Bublitz believes that it is necessary in view of the increase in diesel prices and low profit margins for truck drivers. However, the president of Abracen also argues that the government should work on measures to contain readjustments in food prices.
For him, the effects of diesel oil on the food shelf are enormous, so it is necessary and prudent for the federal, state and municipal governments to meet to analyze appropriate actions, especially tax relief.
Published this Tuesday (17), the 5th Bulletin of the Brazilian Program for the Modernization of the Horticultural Market (Prohort), of the National Supply Company (Conab), evidences a permanence in the increase in the prices of potatoes, onions and tomatoes, in the month Of april.
The carrot, in turn, considered one of the 'villains' of inflation, saw the beginning of a reduction, thanks to low demand, despite still having higher prices than in other years. Compared to March, the price of a kilo registered drops ranging from almost 5% to more than 35%, staying between R$ 4,08 (Goiânia) and R$ 7,50 (Fortaleza).
As for potatoes, there was an increase of more than 40% in the price of the kilo in April, in the supply centers of Rio de Janeiro, Belo Horizonte and Curitiba. This oscillation is related to a lower offer, as the document says, and the kilo was found to be between R$ 2,51 (Rio de Janeiro) and R$ 6,24 (Rio Branco).
Since the second half of last year, a kilo of tomatoes has continued to rise, but to a lesser extent, ranging in April from R$4,07 (Recife) to R$8,09 (Rio Branco). According to Conab, its supply decreased again last month, reaching one of the worst levels in the last two years.
In the case of onions, only Ceasa de Fortaleza showed a slight reduction in price. As for the other supply centers, the increase per kilo fluctuated between 3,64% and 30,16%, in relation to March. The minimum price was R$2,85 in Curitiba, and the maximum was R$5,36 in Brasília.
The high value of onions is related to the concentration of production in just one region

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The National Supply Company communicates that the onion price is under pressure due to the concentration of production in the south of the country, and offers from other regions and imports were not enough to solve this situation.
With regard to fruit, demand dropped in the last month, especially due to the holidays. Thus, there was a reduction in papaya and watermelon prices. The kilo of bananas, in turn, varied between a drop of almost 5% and a rise of more than 13%. Oranges maintained their high value, but also saw variations, between a drop of almost 27% in Rio Branco (AC) and an increase of 4,97% in Recife (PE).
The Conab survey verifies the vegetables and fruits with the greatest representation in the Ceasas and with the greatest weight in inflation, analyzing the prices of the centers in São Paulo, Belo Horizonte, Rio de Janeiro, Vitória, Curitiba, Goiânia, Brasília, Recife, Fortaleza and Rio White.

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