São Paulo – The Brazilian 2020-21 sugarcane crop is just beginning but is promising and can allow Brazil to have a large sugar export supply. According to the “Fortnightly Monitoring of the Center-South Region Crop” through May 16 released by the Brazilian Sugarcane Industry Association (UNICA), the sugarcane grinding through mid-May surpassed 103 million tonnes, up 21.67% from a year ago. Out of this, 45.3% of the processed sugarcane was directed to the sugarcane production, up from 32.19% in the 2019-20 crop. These figures refer to Brazil’s Center-South production, which amounts to 59% of the Brazilian total.
The change in the ethanol-sugar production ratio is related to a change in the market demand. According to Grupo Tereos board member and Federation of Industries of the State of São Paulo (FIESP) chairman Jacyr Costa Filho, the Russia-Saudi Arabia oil price war in early March and the COVID-19 pandemic have reduced oil and gas prices, which affected the ethanol competitiveness. The product is used as a fuel in Brazil. Moreover, the demand for fuels in general has dropped.
By Marcos Carrieri via Brazil-Arab News Agency