
The profitability of rice In Rio Grande do Sul, production remains constrained by the total cost of production, despite the recovery in paddy rice prices in recent weeks. According to data released by the Center for Advanced Studies in Applied Economics (Cepea), the improvement in prices has reduced the gap to the values needed to cover costs, but it still does not guarantee long-term economic balance.
In August, revenue obtained from typical productivity already exceeded operating costs in the Camaquã and Uruguaiana regions.
According to Cepea, however, revenue remained below the total cost of production in both regions analyzed. This scenario shows that the recovery in prices has not yet been sufficient to cover all the costs involved in the activity.
In the spot market, industry activity showed mixed results. At the same time, lower external demand reduced some of the buying pressure on paddy rice. This occurred even in the face of the price recovery observed in recent weeks. While costs continue to limit profitability in the field, rice prices rose again at retail in September.
According to researchers at Cepea, the price increase occurred after the movement observed previously in the market. In the field, planting for the 2026/27 crop is progressing throughout Rio Grande do Sul. The progress of planting is occurring in a scenario where producers continue to monitor the relationship between prices received and production costs to assess the economic balance of the activity.
