Indian Queen Basmati Rice by Bharat Industrial Enterprises limited
Indian Queen Basmati Rice by Bharat Industrial Enterprises limited

Owing to country’s trade war, a move announced recently by Mexican diplomats may be a precursor of what could be happening in the coming months with the trading of major commodities with US. The Mexican ambassador in Brazil, Eleazar Velasco Navarro, promised that he would allow rice imports from Brazil in an agricultural fair in Rio Grande do Sul. Therefore Mexican market is a certainty for Rice Growers Associations in Brazil. In 2015, Mexico harvested 158,350 tons of rice, which was 80.4 percent less than 30 years ago. In this period, consumption has grown from 850,000 MT to 1.1 Million Metric Tonnes (MMT), with most imports coming from the U.S. Brazil is a major player in rice production with 11.8 MMT, while the U.S. produces over 8 MMT annually.

Mike Zuzolo, president of Global Analytics & Consulting explained, “My sense is that Mexico would like to have a plan of action ready in case the border import tax takes on a more serious tone from the Trump administration. However, I am of the view, that the blockage and resistance President Trump is feeling on health care is a good indication of how difficult it will be for him to move more aggressively against our trading partners.”  Whereas Mexican analyst Alfonso García Araneda says, “A massive harvest in South America, particularly from Brazil, added to the appreciation of the dollar will ease and reduce the cost of imports, since the Mexican peso has advanced 15.03% since January.”

 

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