In Brazil, ethanol mills will be the beneficiaries of $167 million worth of subsidies as the country seeks to mitigate the effects of the worst drought in five decades. The government authorized the subsidies in May, but just published a notice regarding disbursement of the funds. Companies in the northeast region will be eligible for 20 centavos of funds for every liter of fuel they produced from 2011- 2012. “If we don’t intervene then there’s going to be supply problem” for ethanol in the region, said Cid Jorge Caldas, director of the Ministry of Agriculture, Livestock, and Food Supply.
More background on the story from the Digest