Brazil Releases R$270 Million for Northeast Sugarcane Growers
Brazil has authorized up to R$270 million for independent sugarcane growers in the Northeast affected by drought, lower prices and weaker access to the US market. The subsidy will pay R$12 per tonne of eligible cane and may support 16,000-17,000 producers.
Subsidy targets independent growers
Brazil’s federal government has authorized an economic subsidy of up to R$270 million for independent sugarcane growers in the Northeast, where prolonged drought, falling sugar prices and export barriers have reduced farm income. Agriculture and Livestock Minister André de Paula discussed implementation of the program with growers and industry representatives at the headquarters of the Paraíba Sugarcane Growers Association, known as Asplan, in João Pessoa. Representatives of the National Supply Company, Conab, also attended.
The program provides R$12 for every tonne of sugarcane produced and sold during the 2025/2026 season. Eligible cane must have been delivered to a mill, distillery or cooperative in the Northeast between 1 August 2025 and 31 July 2026. The subsidy was authorized by Provisional Measure No. 1,374/2026 and regulated by Decree No. 13,092/2026. Independent individual and corporate growers may apply, while cooperatives and associations can participate for production belonging to members who also qualify as independent producers.
Lower cane prices squeeze farm margins
Asplan President José Inácio de Morais said the price received by growers had fallen from as much as R$175 per tonne to around R$137. The R$12 payment would therefore offset part, but not all, of the decline. CNN Brasil reported that the government expects the program to reach between 16,000 and 17,000 producers and help maintain approximately 60,000 jobs in the region’s cane fields.
The Agriculture Ministry described the support as an extraordinary response to climatic and market losses. Alongside extended dry periods and weaker international sugar prices, Northeast suppliers have faced reduced access to the United States following an additional 50% tariff. CNN Brasil said the tariff applies to a quota of approximately 155,000 tonnes of sugar, a significant issue for the Northeast because the region produces a substantial share of the Brazilian sugar shipped to that market.
Conab will verify claims and make payments
Conab will examine eligibility, sales records and evidence of losses before transferring approved payments by Pix. Applicants must submit the required documents electronically by 30 October 2026. State producer associations are expected to assist with registration, an important operational step for a program covering thousands of independent farms rather than a small group of large processors.
The package is modest relative to the size of Brazil’s sugar-energy industry but is concentrated on a financially exposed regional supply base. Conab data cited by Brasil 247 and CNN Brasil put national sugarcane production at 673.2 million tonnes in 2025/2026, sugar output at about 44.2 million tonnes and combined cane- and corn-based ethanol production at roughly 37.5 billion litres. Agrostat data reproduced by both publications show that Brazil exported approximately 29.47 million tonnes of sugar and derivatives worth US$12.08 billion in 2025. The Northeast accounted for around 1.63 million tonnes and US$719 million, led by Alagoas, followed by Pernambuco, Paraíba and Rio Grande do Norte. The subsidy is intended to prevent current pressure on growers from causing a deeper contraction in regional cane production and employment.
