Brazil to announce ethanol bailout package this week

In Brazil, Reuters reports that the agriculture minister says a bailout program for the country’s ethanol industry will be announced this week which will include dropping the Pis/Cofins levy on ethanol for a yet-to-be-determined period while the Cide tax on gasoline will also be increased in an effort to make ethanol more attractive to the few drivers still left on the road. The sugarcane industry relies on ethanol sales as working capital during the sugarcane crush which just launched for the season last month.