Brazil and USA made changes to Memorandum of Understanding about biofuels

In Brazil, last week US President Barack Obama and Brazilian President Dilma Rousseff made changes to a 2007 Memorandum of Understanding between the two countries about biofuels production.

This time they added a clause about increasing ethanol use for aviation and another about removing ‘impeding barriers to biofuels trade.’ On Monday, Indian Agriculture Minister Sharad Pawar urged the Finance Ministry to remove its existing ban on sugar exports because there was excess exportable sugar in the country. If that happens the increase in global sugar supply is likely to depress world sugar prices, making ethanol exports the more profitable alternative.