Brazil is the world’s largest exporter of ethanol, but bad rains have been blamed for a poor sugar cane harvest, and local supply has been depleted.
Brazil recently decreased the mandated blend of ethanol in gasoline from 25% to 20%, roughly representing 100 million litres per year, to combat steadily rising biofuel prices.
Unica says its tax cut request is not related to a dip in ethanol stocks, and instead reflects the group’s position for free trade for renewable fuels.
Brazil
