Sugar and ethanol: strategic change decided by the Brazilian government

The Brazilian government has indicated that it will stop supporting the sugar sector, and will create a new line of credit backed by the BNDES (Brazilian development bank). The ethanol credit line will support producers to the extent needed, and it seems that there will be no cap on the loans. This appears to be a strong response to the current difficulties that the sector has been facing, and the government appears determined to support the ethanol sector while removing preferential treatment of sugar.