Sugar Boom for Brazil

In Brazil, the sugar industry is cashing in on a monsoon-related sugar shortage in India. The increased demand is driving-up the price of cane sugar on the global market.

Things are looking sweet for Brazil these days.After suffering the worst monsoon in forty years, India has been importing around a million tons of raw sugar from Brazil in the last three weeks. The South Asian nation needs to meet demands for its annual festival season.

As a result, Brazil’s raw sugar prices have increased dramatically.And to cope with the demand, the country’s top sugar mill, Cosan, is now diverting more cane to the production of the sweetener than that of ethanol. The company is exporting 80 percent of its total output.

[Carlos Murilo de Mello, Director, Cosan]:
"We are maximizing sugar production since the profit from sugar is above average. And the profit from ethanol is not as interesting as the one from sugar. So, since the beginning of this harvesting season, we have maximized the production of sugar. And we'll reach 60 percent of sugar mix, being that 80 percent to 85 percent of our sugar production goes abroad."

Analysts say the sugar price bonanza may start up a global cane-planting frenzy.


Source:english.ntdtv