Sao Paulo, Sept 3 - The Brazilian government will take 10 million bags of coffee off the market by next year, Agriculture Minister Reinhold Stephanes confirmed in an e-mailed release late on Thursday.
The aim is to improve prices, considered low by the industry.
"To do this, the government will acquire the product to build inventory and authorize the payment of the sector's debts with coffee," the note read.
The measures still need approval by the National Monetary Council.
Last week, Carlos Melles, the head of the congressional group representing coffee producers, told Reuters about the plan, which would also include already-concluded auctions for options for 3 million bags.
That means the government will be taking another 7 million sacks off the market, including 2 million more this year and 5 million next year.
The volume of 10 million sacks of 60 kilograms each cited by the ministry corresponds to about 25 percent of the 2009/10 harvest.