Sugar-and-ethanol mills will have credit for storage

Sugar-and-ethanol mills are likely to receive a financing line aimed at storage, after requesting that and two other aid measures from the federal government. The other measures, involving changes in taxes, met resistance in the Ministry of Economy, sources say. In a live talk on video promoted by Valor, Cosan CEO Luis Henrique Guimarães said the financing line could offset the steep demand contraction. Being able to sell 6 billion liters of ethanol in the future under better prices “balances the market at this beginning of the crop,” he says. Talks already involve state-owned Brazilian Development Bank (BNDES) and Banco do Brasil and the idea is also reaching private-sector lenders too.

Source: Valor Econômico