Measures to help Brazil’s ethanol sector not announced yet

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Brasilia: The sugar mills in Brazil have shifted to sugar production and are producing minimal ethanol as the ethanol sales in the market have dipped due to least demand amid lockdown. The ethanol industry in Brazil is in deep trouble, and to bring it out of the crisis, support was about to announce last week, but there is no announcement yet.

According to the Reuters, Tereza Cristina Dias, agricultural minister of Brazil said on Thursday he was “frustrated” that measures to help the country’s ethanol and sugarcane sector have not been announced yet, after predicting supports would be unveiled last week.

Dias said that the government has planned a series of measures to help the sector struggling with low fuel prices by withdrawing the PIS/COFINS federal tax on ethanol and increasing CIDE tax on gasoline.

Following the sharp decline in the prices of crude oil, the ethanol producers in Brazil are mulling to reduce ethanol production and diverting more cane for sugar production.

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