ETHANOL: THE THROWING OUT IMPORTS.

Brazil does not need to import anhydrous ethanol in the United States to balance the supply of fuel in the internal market would be limited and making prices rise. The information is the technical director of the Industry Cane Sugar (Unica), Antonio de Padua Rodrigues, and was made with regard to comments on the possible importation of the product in Brazil. Rumors have arisen after the trading ADM made a consultation on logistical costs of importing ethanol from the United States destined the Northeast. Chicago Mercantile Exchange, contracts of corn, the raw material for domestic ethanol, have risen in recent days. In Brazil, the basis is used in blending with gasoline at a ratio of 25%. For Rodrigues, several factors make it impossible at this time the import of U.S. ethanol. "First there is the need a specification for the U.S. ethanol, which is corn, "he said. Another factor is the cost. While the weaker dollar and the price of ethanol in the United States are cheaper than in the past, it is still impossible to import into the anhydrous is sold in domestic market of South Central in current prices. However, for the Brazilian Northeast, the operation is mathematically feasible, according to the consultant Arnaldo Correa, risk manager of the Archer Consulting. According to him, considering the price of U.S. ethanol, around $ 1.85 per gallon and the tax paid by importer of 20%, the U.S. ethanol would still come here with a gain of $ 100 per cubic meter. He emphasizes, however, that this viability is linked to the weaker dollar and this is a risky operation, if it occurs. "This does not mean that the import happen. There are other issues to consider, "he said. One such issue would be the import of ethanol in the Northeast when the region begins its season. "It would be morally condemned if this import occurs. This product will fill the space that ethanol could be produced during the season that begins the means reduced labor force engaged, "said the president of the Association of the Sugar and Alcohol of the State of Pernambuco (Sindasucar), Renato Cunha. "It would be contradictory to Brazil to import ethanol when building an image of a large exporter of biofuels," he said. The Executive also states that the U.S. ethanol is subsidized and has different characteristics to the product used here. Rodrigues, Unica, emphasizes, however, that Brazil has basis and that the importation was unnecessary. "About 30% of the crop has is to be processed and it has to supply the market, "he says. If you do not supply, the market will self-policing, he said. According Rodrigues, with the high price of hydrous ethanol that is being registered, ethanol prices will rise, which can take your competitiveness with gasoline. With the use of more fuel, which the basis is mixed, the price of anhydrous to rise further. "With the high price of anhydrous, the sugar mill will produce more ethanol, balancing supply and demand, "informs. To Padua, things can be resolved internally without the need for imports.