The government’s decision of zero-tariff quota for ethanol imports by the end of 2022 to control the rise in inflation has set off concerns among producers, since the price of gasoline could increase R$ 0.20 per liter at the pump. The executive president of the National Corn Ethanol Union (Unem), Guilherme Nolasco, says that the sector will propose the government the creation of quotas for the volume of fuel to be imported, as to control the entry and provide predictability to the industry. For Nolasco, no immediate impact is expected for ethanol price and production. The corn crop has already generated ethanol and, as of April, the 2022/23 sugarcane crop will begin, which should balance prices. The government’s decision does not change projections for the sector, said Nolasco. According to Unem, corn ethanol production reached 3.43 billion liters in the 2021/22 season, an increase of 29.43% over the previous one. The projection for the 2022/23 season is 4.2 billion liters.

Sources: Globo Rural/National Bioenergy Union (*Translated by Ia Niani)