Brazilian ethanol tax cut won’t suffice, says Bloomberg

In Brazil, the ethanol tax cut won’t prevent a fourth annual surplus for the production of sugar, according to estimates published in Bloomberg. Sugar production is predicted at 34 million metric tons with the tax cut designed to rein in consumer prices proposed by Brazilian President Dilma Rousseff. “The tax cut is welcome, but will have limited impact on the market,” Plinio Nastari, president of Barueri, Brazil-based research company Datagro Ltd., told reporters in Sao Paulo on March 19.

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