Arrangement of loan of more than 500 billion riyals for agriculture sector in Brazil

11-Jul-2024 12:33 PM

Brasilia. The government of Latin American country Brazil has released the details of its plan for the agriculture sector for the season 2024-25.

Under this, 400.59 billion riyals will be arranged for loans for medium-class and large farmers. This amount is 10 percent more than the 2023-24 season.

Apart from this, 108 billion riyals will be made available in the form of Agri Business Letter of Credit. In this way, a total of 508.59 billion riyals will be arranged to promote agricultural development in Brazil. Not only this,

but a separate scheme has been prepared for small and marginal farmers under which they will be provided a loan of 76 billion riyals, which is 6.2 percent more than 2023-24 and 43.3 percent more than 2022-23. 

The interest on this loan is low and farmers use it to purchase agricultural resources which include food, seeds and pesticides etc.

It is noteworthy that Brazil is the largest producer and exporter of soybean in the world, while it is second in the export of maize and third in production.

Apart from this, wheat, cotton and many other crops are also produced there on a large scale. Soybean oil and some pulses are imported from Brazil in India.

Sowing of soybean and maize will start in Brazil from September for the 2024-25 season. Brazil is also the largest producer and exporter of sugar in the world.

Harvesting of the next new crop of soybean and maize will start in February-March 2025.