Brazil has witnessed an increase in ethanol production, following which now the country will import less ethanol in the coming year. According to the USDA’s Foreign Agricultural Service’s annual Biofuels report, the country’s 2019 ethanol imports will see the decline of 495 million litres relative to the previous calendar year. Import is projected at 1.2 billion litres.
It is believed that reduce in country’s import is because of a hike in domestic production. The falling prices of sugar in the international market has helped Brazil to emphasise more on ethanol production. The excess production of sugar kept the prices low, and the mills turned back to their favourite ethanol production as the gasoline prices have increased. It is expected that they will allocate more sugarcane towards ethanol output because of strong local demand for the biofuel.
Brazil is expected to produce 31.387 billion litres ethanol, which is 3 per cent high compared to 2018. The country’s consumption is estimated at 33.93 billion litres in 2019, therefore shortfall will be fulfilled by imports.
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