Brazil will focus on ethanol production instead of sugar

11-Mar-2026 04:11 PM

Sao Paulo. Given the rising international price of crude oil (petroleum), the Latin American country of Brazil may focus on ethanol production this year. Consequently, sugar production there is expected to decline slightly.

According to industry and trade analysts, since Brazil is the world's leading producer and exporter of sugar, the decline in production there could have a positive psychological impact on global market prices.

A rise in international market prices could provide India with an opportunity to improve its sugar export performance.

The Indian government has approved the export of 2 million tons of sugar this year, with shipments expected until September 30, 2026.

The new sugar marketing season is set to officially begin in Brazil next month. Analysts believe that millers and processors may use a greater amount of sugarcane for ethanol production instead of sugar.

On the first day of the current week, raw sugar futures rose by more than 3 percent on the New York-based Intercontinental Exchange.

Meanwhile, sugar production is expected to decline in Brazil's central southern region. It's worth noting that this region produces approximately 90 percent of Brazil's sugar, and preparations have already begun there.