Brazil Ethanol Tax Cut Won’t Be Enough to End Sugar Surplus

An ethanol tax cut in Brazil, the world’s largest sugar producer, won’t be enough to avoid a fourth annual surplus for the sweetener.

Sugar production in Brazil’s center south in 2013-14 will be 34 million metric tons with a tax cut or 35.2 million tons without a cut, according to the average estimate in a Bloomberg survey of six mill owners who make a third of the area’s supply. Center south output, the world’s top producing region, was an all-time high of 34.1 million tons last year.