Sao Paulo, Brazil: Few sugar companies in Brazil are focusing on producing cane-based Biofuel rather than sugar. Sao Martinho SA (SMTO3.SA), one of the largest sugar and ethanol makers, confirmed the development on Monday. The company said that it plans to increase ethanol production in the 2021-22 season.
According to the news report published by Reuters, the company said that it intends to use 58 per cent of the cane to make ethanol, an increase from 53 per cent for the last crop.
The company said, “We believe ethanol prices will stay at a higher level along the season compared to the previous crop, a result of higher oil prices and the recovery of fuel sales in Brazil.”
The sugarcane output in Brazil is likely to be lower than normal due to the dry weather in the sugarcane producing region.
Sao Martinho stated that it would crush 9% less cane during the ongoing season.
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