Sao Paulo: Brazil will focus on the increase in sugar production when the season begins from April as the global prices of oil have sharply fallen, said Ricardo Mussa, the incoming chief executive officer of Raizen, the world’s largest sugar producing company.
“Already there were intentions of increasing sugar production this season and the decline in oil’s price has boosted the plan,” he said to reporters after a presentation to investors and analysts in a programme.
According to the experts, fall in oil prices will likely result in lower gasoline prices in the Brazilian market, therefore mills may allocate more cane for sugar production.
The Brazilian mills are flexible to produce both sugar as well as ethanol depending on the prices. In the last two seasons, 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.
In India, petrol and diesel prices registered a drop across the country on Monday as global oil prices plummeted around 30 per cent after Saudi Arabia slashed prices and set plans for a dramatic increase in crude production in April.
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