In light of the energy crisis, sugar-producing companies in Brazil have shifted from trading their usual product to producing ethanol, which is used as fuel. This information is reported by the OCN news portal, citing the international agency Reuters.
Experts say that this situation may lead to a global sugar shortage. In April, ethanol exports from Brazil increased by 2.6%, while raw sugar shipments decreased. Contracts ranging from 200 to 400 thousand tons were canceled, which is a significant portion of the total export volume, which usually amounts to around 2.2 million tons per month. It should also be noted that another factor affecting the decrease in sugar exports is crop problems.
Sugar mill owners claim that the profits from selling ethanol compensate for the costs of canceled sugar contracts.
A similar situation arose at the end of 2021 when Brazilian companies also actively shifted their operations to ethanol production. India, which plans to increase the share of ethyl alcohol in fuel consumption, is also a cause for concern.
It was previously reported that in the near future, 11 Latin American countries will sign a regional agreement simplifying customs procedures, as Valor Econômico writes.
The customs services of different countries will mutually recognize companies with a positive reputation in the field of customs operations and provide them with the opportunity to efficiently go through import-export procedures. This way, the processing time for importing and exporting specific goods will be reduced from several tens of hours to just half an hour.
