Up to 20% of Brazil Center-South Cane Mills May Be Shut or Sold

As much as a fifth of the sugar-cane mills in Brazil’s center south, the world’s biggest producing region, may close or get sold this year because they are selling ethanol at a loss, according to a member of the country’s lower house.

The government’s plan to raise the blend of ethanol in gasoline to 25 percent from 20 percent in May won’t be enough to make mills profitable and an anticipated tax cut for the renewable fuel will probably reduce prices at the pump, Duarte Nogueira, a deputy who represents Sao Paulo state for the Brazilian Social Democracy Party, said today in a telephone interview.