On Tuesday, Governor Helder Barbalho of Para, a northern Brazilian state, announced plans to introduce legislation abolishing a state tax on grain production. The decision followed consultations with farmers who expressed concerns about the upcoming law. The proposed tax included charges of 4.32 reais ($0.7527) per 60-kilo bag of soybeans and 2.09 reais ($0.3641) per 60-kilo bag of corn.

The soy farmers' organization, Aprosoja Para, hailed the governor's move as a crucial win, stating it was vital for the sector's competitiveness and growth.

This development comes in the midst of backlash from farmers and industry groups over a new law in Maranhao state, which imposes a 1.8% tariff on grain exports. While Maranhao authorities defend the levy by citing plans to invest in logistics for the benefit of the agricultural sector, the global grain merchants' association, Abiove, contested the measure in court last week.

(At the time of reporting, $1 equals 5.7396 reais)