Brazil Chamber of Deputies approves sugarcane subsidies for Northeast producers

The Brazilian Chamber of Deputies has approved a legislative proposal to provide economic subsidies to independent sugarcane producers in the Northeast region. The measure provides R$ 12 per ton of sugarcane produced and delivered to mills, distilleries, or cooperatives during the 2025/2026 harvest, with an estimated impact of R$ 270 million this year.

Relator Lula da Fonte noted that the region's producers have been impacted by prolonged droughts, falling sugarcane prices, and US tariffs on Brazilian exports. The proposal also authorizes up to R$ 14.5 billion in reimbursable financing to modernize transport fleets for cargo and passengers, focusing on environmental and social sustainability.

In a separate legislative development, a new legal framework for rural insurance has been published. The law integrates rural insurance into the set of guarantees for rural credit operations, allowing for more favorable interest rates, terms, and credit access. This aims to strengthen financial security for producers facing increasing climate risks.