The Brazilian government plans to extend credit in the agricultural sector in an attempt to increase production of key foodstuffs and damp down inflation, which has pushed the basic basket of goods up by 50 per cent in some cities in Brazil over the last 12 months.

The ministry of agriculture said on Wednesday that it would increase loans avail-able for agricultural use to 78bn Reals (£24.4bn), a 12 per cent increase, and will hold interest rates steady for these loans at 6.75 per cent.