Sugar mills in Brazil are likely to produce only 200,000 tonnes more sugar in the 2022-23 season despite a better sugarcane crop, as most of the cane will be diverted towards ethanol production, said investment bank Itau BBA, reports Reuters.
As per the agricultural research arm of the bank, the centre-south (CS) region of the country is expected to produce 32.2 million tonnes in the 2022/23 season as against 32 million tonnes in the previous season. The drought and frost had affected the cane crop last season, which witnessed 523 million tonnes of cane.
The mills are likely to divert the more cane to ethanol production, believes BBA and projects the ethanol production to increase by 9% more year-on-year to 30 billion litres in the new season.
