Coronavirus (Covid-19) has put the world in a deep crisis. Every industry is facing a financial crunch and is struggling to survive. It has also impacted the sugar and ethanol industry worldwide. Brazil, one of the leading producers of sugar and ethanol, is also facing the heat of Covid-19.
Brazil-based, Sugar and ethanol company, Cosan SA expects a difficult time for sugar and ethanol companies in the country. Due to lockdown, there is no movement of vehicles, therefore there is a low demand for biofuels and it has put the ethanol producers in the trouble.
According to the Reuters, Cosan chief executive officer Luis Henrique Guimaraes during a call with analysts said, “Some Brazilian companies financial difficulties may increase as demand for the biofuel falls and prices for the sweetener are near a 12-year low.”
Recently, Brazilian sugarcane industry association UNICA sought relief for the industry and according to the media report, government may announce it soon.
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