Brazil’s centre-south to witness decline in sugar production

With the sugar mills in Brazil more focusing on ethanol production, sugar output is likely to hit. According to the Sugar group Biosev, Brazil’s 2019/20 centre-south sugar output seen at 25.9 million tonnes as against 26.5 million tonnes in 2018/19.

The falling prices of sugar in the international market has helped Brazil to emphasise more on ethanol production. The excess production of sugar kept the prices low, and the mills turned back to their favourite ethanol production as the gasoline prices have increased. It is expected that the mills will allocate more sugarcane towards ethanol output because of its huge demand. Sugar output in Brazil will decline from expected production as mills are likely to divert less cane for sugar.

Brazil is also likely to witness a hike in Ethanol production as more companies are eyeing to invest in more ethanol. Biosev says that Brazil’s 2019/20 centre-south ethanol output seen at 32.1 billion as against the 30.9 billion litres in 2018/19.

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