Last week, the Brazilian government reportedly granted an export subsidy of about $53 per ton covering 117,711 metric tons of rice.  Brazil's program, called "PEP," provides a minimum guaranteed price to producers and cooperatives by paying the difference between the minimum guaranteed price and the market price to purchasers in Brazil who agree to move the rice out of the area of production and/or to the export market.

USA Rice is actively engaging the U.S. Embassy in Brasilia and USDA and USTR in Washington to determine whether the PEP exceeds Brazil's commitments to the World Trade Organization.

Total reported subsidies under the program have supported 1,476,626 tons of Brazilian rice costing about $120.2 million this calendar year.