NORTHEAST BRAZIL PRIORITIZES ETHANOL FROM RECORD SUGARCANE CROP AND CALLS FOR SUBSIDIES

The 2025-26 sugarcane crop in Brazil is expected to surpass 668.8 million tons, down 1.2% from the previous season. Roughly 609 million tons will come from the Center-South, whereas 59 million from the Northeast. Despite favorable weather, northeastern producers face significant challenges, including a 50% U.S. tariff, suspended export quotas, and high production costs driven by a 73% reliance on manual harvesting. The harvest should produce 2.3 billion liters of ethanol and 3.8 million tons of sugar, identical to last year. This stability is straining small and medium-sized producers. Corn-based biofuel is threatening the sector’s competitiveness, highlighting the need for price parity with gasoline and initiatives to secure domestic and export distribution.
Source: Notícias Agrícolas (*Translated by Ia Niani)