No demand for ethanol compels mills in Brazil to sell at loss


The ethanol industry in Brazil is badly affected due to Covid-19. The situation is such that producers are forced to sell ethanol at loss.

According to Chief Executive Officer (CEO) of RPA Consultoria, with no demand for ethanol, sugar mills in the Sao Paulo are selling hydrous ethanol bearing loss from last four week said Ricardo Pinto. They are selling ethanol below BRL 1.40 litre (US$0.25).

The mills have increased sugar production to reduce losses incurred from ethanol sale. 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 sought from the government. But it is not yet announced. The ethanol lobby in Brazil’s lower house of Congress is proposing a bill to suspend imports of gasoline, diesel and ethanol for 90 days. They expect it will give relief to the producers.

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