Product specification:  Paddy rice, 58% whole, 10% broken. Processed in Rio Grande do Sul State to be transformed into milled rice type 1, according to the classification of the Brazilian Agriculture Ministry – ordinance 269/88. Collected values refer to trades in the spot market, involving the grain available in the market or at processors/cooperatives for future liquidation;
Unit of measurement/currency: 50-kilo bag in Real and dollars. The Index is converted into dollar (US$) by considering the commercial exchange rate updated at 4:30 pm (Brasilia time);
Delivery product price at the industry in Rio Grande do Sul (freight included);
Processing region each of the destination regions (a group of cities) of paddy rice for processing in Rio Grande do Sul State: Campanha, Depressão Central, Fronteira Oeste, South Zone, Planície Costeira Interna e Planície Costeira Externa. The regions are defined according to the administrative division of the Instituto Rio-Grandense do Arroz (Irga);
Weighting of the regions for the Index each region participates with the same share as in the total processing of the state, according to the IRGA for each crop-year;

When all values are converted to cash prices, without taxes and at the industry, the arithmetic average is calculated for each one of the six regions. These regional averages are then weighted, based on the respective share of supply in the entire state in the previous year-crop. The result, in Brazilian currency, is the Index of paddy rice from Rio Grande do Sul ESALQ/SENAR-RS;

Statistical treatment: The daily sample is subjected to two statistical procedures: standard deviation (it is accepted values between the intervals of two standard deviations up and down in relation to the sample average) and analysis of the variation coefficient;
Discount rate of term prices: CDI rate; Cash prices are released;
Considered taxes: no taxes included;
Frequency: daily;
Historic:  since July 2005;
Agents consulted for the survey: processors, cooperatives, driers/warehouses, growers and traders, through daily price surveys made by phone calls;
Other Cepea surveys about the rice market: Besides paddy rice type 1, Cepea also collects prices of paddy rice for different yield of full grains in all producing and trading regions in Rio Grande do Sul State.


Source: Cepea




Geraldo Sant’Ana de Camargo Barros, Ph.D
Full professor of the Department of Economics, Management and Sociology

Chief Researcher
Lucilio Rogerio Alves, Dr.
Professor do Depto de Economia, Administração e Sociologia

Research Assistants

Isabela Rossi
Daniela Simioni