Emergency state sugar can funding is to rise from five reals per ton to 10 reals per ton. This was the pledge made by the government to a delegation comprising the North Eastern Sugar Cane Union and the Ministry of Agro-Energy Production.
Production losses of 30-60 per cent have been reported in the north eastern sugar regions due to prolonged dry weather with the Zona da mata region being particularly affected.
The north east sugar region produces 18 million tons of sugar cane annually, yielding 55 tons from its 327,000 sugar cane hectares.
The grant system has reached its gals of supporting greater productivity, according to the Ministry of Agriculture.
State expectations see 92 per cent of small and medium north eastern producers being helped by the funding renewal.
Sugar cane industries from the northern Pernambuco and Alogoas regions represent 10 and 20 per cent of Sao Paulo gross domestic product and employ 90,000 workers.