Brazil’s President announces package for ethanol recovery


Yesterday Brazil’s president Dilma Roussef met sugarcane industry leaders to align a package of incentives to ethanol, because the biofuel has lost competitiveness relative to gasoline.

Dilma promised to reduce the tax burden and the period of compensation credit, and also decreasing the volume of gasoline imports.

BIO&Sugar had exclusive access to the measures that will constitute this package, namely:

– Decreasing in interest for the ProRenova financing, reaching a maximum of 5.5%;

– Funding for storage;

– Zero Tax collection PIS / COFINS (Social Integration Program / Social Contribution for the Financing of Social Security), both in production and in distribution.

In an intent to of the resumption of Brazilian ethanol, earlier this year, the government had already authorized the increase in the price of gas and diesel (6.6% and 5.4%, respectively), and restored the 25% ethanol blend in gasoline, which had been reduced to 20% in 2011 due to a shortage of the biofuel.

“That will not placate several years without profitability,” said a source close to the sector, after the meeting.