THE IMPACT OF THE MP. 870/2019 ABOUT THE BASIC FOOD BASKET IN BRAZILIAN CAPITAL CAPITALS

Abstract

The extinction of the National Council for Food and Nutritional Security (Consea), in January 2019, through provisional measure no. 870/2019, represented the dismantling of food policies, such as the Food Acquisition Program (PAA). This article aims to analyze the effects of provisional measure 870/2019 on the basic food basket in Brazilian capitals. For the construction of the panel, monthly data on the basic basket of 16 Brazilian capitals were collected over the years 2016 to 2022 of the DIEESE. From the data collected on the basic food basket and the minimum wage, analysis variables were constructed for the number of hours of work required to acquire the basic food basket (quanthrs), commitment index of the basic food basket in relation to the minimum wage (ICR), cost family with food (CFA) and the necessary minimum wage (SMN). The econometric model used was the panel data model with fixed effects. The results indicated an increase in the cost of the basic basket of around 45%, the CFA resulted in R$699.00 and the amount in 15 hours. additional costs to purchase a basic basket, this means that Brazilian families are spending more effort to buy the minimum to eat. The ICR increased by 14% and the necessary minimum wage would need to be readjusted by more than 30% to guarantee and pay for food, clothing, housing, hygiene and transportation.