Production of Ethanol from Sugarcane in Brazil

Volume 43 of the series Natural Resource Management and Policy pp 7-43


State Intervention in the Chain of Production of Ethanol from Sugarcane in Brazil: Its Forms and Effects on the Development of the Sector Between the 1930s and 1980s

  • Márcia Azanha Ferraz Dias de MoraesAffiliated withLuiz de Queiroz College of Agriculture (ESALQ) Economics, Business and Sociology Department, University of São Paulo Email author 
  • , David ZilbermanAffiliated withAgricultural and Resource Economics, University of California

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To better understand the form and relevance of state intervention in the agribusiness of sugarcane production in Brazil, we sought to create a chronology of the major government policies adopted and of their effects on the industry. The sugarcane ethanol industry has seen alternating cycles of overproduction and oversupply. Therefore, intervention in the industry has been based primarily on maintaining the balance between production and consumption using two basic instruments: crop plans and policies designed to regulate prices and credit.