Global sugar market may get impacted if Brazil continues to focus on sugar production by reducing ethanol output. After coronavirus influenced the ethanol industry, sugar mills are diverting more cane towards sugar production. Due to which, sugar output increased in the country.
The ethanol industry in Brazil was badly affected due to Covid-19. The situation was such that producers were forced to sell ethanol at loss. The global demand of fuel has declined after lockdown which resulted in lower demand for ethanol. But, now ethanol sales are improving in the country with the relaxation in the lockdown rules.
However, sugar production in Brazil continues to rise. According to a media report, sugar production is expected at 35.3 million tonnes, up from 29.8 million tons last season.
Some international industry experts are now raising concerns that sugar production in that country could drive down global prices even as ethanol demand increased.
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