Rio de Janeiro criminal cartels monopolize essential goods, costing formal economy R$21.4 bn annually

Armed drug factions and militia groups in Rio de Janeiro have expanded beyond traditional illegal markets to control the supply chain of everyday products such as food staples, cleaning supplies and construction materials. By forcing merchants to buy from designated suppliers and setting their own prices, the cartels have created a territorial monopoly that a Firjan study estimates harms the formal state economy by roughly R$21.4 billion each year.

Prosecutor Fábio Corrêa describes the development as the “third wave” of organized crime, following drug retail and illicit service exploitation. Incidents like the forced closure of egg sales and price hikes at a Duque de Caxias supermarket illustrate how the coercion directly affects local businesses and consumers, eroding competitiveness and raising operational risks for legitimate firms.