The Brazilian government invests 37 billion U.S. dollars in the ethanol industry

On February 24, the Brazilian Ministry of Agriculture announced that in the four years from 2012 to 2015, it will invest US$37 billion in the ethanol industry for sugar cane production and expand the source of raw materials for ethanol production. The Brazilian government’s investment plan is designed to meet domestic demand as well as the growth potential of the international market.

This year's sugarcane harvest season, due to the drought and the aging of sugarcane provenances, coupled with the lack of investment for many years, accounting for 90% of sugarcane crush 90% in southern Brazil cut production by 20%. Because of the reduced production of sugarcane, hydrated ethanol has lost its comparative advantage in price. Currently, most vehicles that use ethanol as fuel use gasoline.

The funding source for the government's sugar cane program has not yet been fully implemented, but the Brazilian Economic and Social Development Bank (BNDES), as one of the agencies that has provided **, has arranged $2.4 billion for the upgrading of sugarcane provenances in 2012. The Brazilian Ministry of Agriculture is coordinating the Ministry of Energy, Mines, Ministry of Finance and other financial institutions to implement the sugarcane investment plan.