MG: Low ethanol demand worries producers

According to the data released by the Association of Sugar and Energy Industries of Minas Gerais (Siamig), the estimate for the 2020/21 harvest is of a large-volume harvest that will benefit the increased demand for ethanol. However, the concern of the users regarding the market for the sale of the product is great, given the current coronavirus pandemic.

Mills are expecting a larger harvest than the previous year. However, the state of Minas Gerais has pessimistic estimates regarding ethanol, due to falling oil prices – which has made gasoline values more competitive. Because of this and the lower fuel consumption caused by social isolation, the sector has recorded prices below production costs. Thus, producers have asked the government to create measures to assist entrepreneurs.

"There is no way to postpone the harvest, our concern is great and something needs to be done. When the harvest starts, the expenses are large, it takes working capital. With the demand weakened, the trend, if we put production on the market, is a significant drop in price, so it is necessary to create a financing line for the storage of ethanol", said the president of Siamig, Mário Campos.

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