Brazilian minister promotes ethanol production partnership with India

Tereza Cristina, from the Agriculture, Livestock and Supplies Ministry, was in New Delhi (India) on Thursday (23/01) for a seminar on Opportunities in Energy and Mining. At the event, the minister promoted the idea that India and Brazil should form a partnership to expand the production and use of ethanol. As of this Friday (24th), the minister will joined by President Jair Bolsonaro in India. On Saturday (25th), up to twelve commercial agreements are expected to be signed, one of which will refer to the ethanol sector.

According to Tereza Cristina, Brazil and India are responsible for approximately 55% of global sugarcane and 35% of sugar production. With regards to ethanol, Brazil manufactures more than 30 billion liters per annum and is the world’s second largest producer, whilst India produced was only 1.5 billion liters in 2018.  “In this context, there is an enormous potential for cooperation between our nations. An increase in ethanol production in India would bring, in addition to the socio-economic benefits already observed, great environmental gains,” said Cristina.

According to the minister, India’s increased production of ethanol would help stabilize the global price of sugar which is currently falling.  “The possibility of cooperation with India will serve to support the creation of the global ethanol market. From India’s perspective, there would be gains as it would lead to a reduction in pollution in large cities, a greater supply of renewable energy and reduced dependence on oil imports”.  Also at the meeting were the Mining and Energy Minister, Bento Albuquerque, Brazil’s ambassador to India, André Aranha Correa do Lago, and India’s Minister of State, R. K Singh.

Food security

Tereza Cristina was also present towards the end of a meeting on Partnership in Food Security, which brought together representatives from the Indian Food Importers Forum and the Brazilian Animal Protein Association (ABPA).  The United Nations estimates that India is set to become the most populous country in the world by 2030, overtaking China. Given this projection, the minister pointed out that Brazil is able to become the main supplier of animal protein to India.

Brazil made its first chicken export to India last year, with 33 tons exported. Cristina believes that Brazilian exports to the Indian market have the potential to grow at an average rate of 7% per year, but this depends on import taxes being reduced.  “For our strategic trade partnership in chicken meat to be established, it is essential to reduce import tariffs. In the case of frozen whole chickens, India levies a 30% tariff on imports from Brazil, whilst for frozen cuts the tariff reaches 100%. India recently opened its doors to accept pork imports although sales have not yet been made, largely due to the 30% import tariff. The complex system for issuing import licenses still makes the process too time consuming and costly “, said Cristina.

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