Brazil approves R$ 270 million subsidy for Northeast sugarcane producers

The Brazilian federal government has issued Decree No. 13.092/2026, authorizing R$ 270 million in economic subsidies for independent sugarcane producers in the Northeast region. The measure aims to support producers affected by extreme weather events during the 2025/2026 harvest and losses resulting from additional United States tariffs on Brazilian exports.

The subsidy provides R$ 12 per ton of sugarcane sold. To qualify, producers must have delivered production between August 1, 2025, and July 31, 2026, and submit documentation to the National Supply Company (Conab) by October 30, 2026. The initiative was supported by House President Hugo Motta to protect regional employment and income.

In response to the announcement, São Paulo Governor Tarcísio de Freitas criticized the decision, arguing that the federal government neglected sugarcane producers in São Paulo. He highlighted a perceived tax asymmetry between different producing states and called for measures to address the loss of competitiveness in the São Paulo sector.