United States cuts Brazil sugar import quota for 2027

The United States has announced a reduction in the raw sugar import quota for Brazil for the 2027 fiscal year. The new quota allows for 100,000 tonnes of sugar to be exported with preferential tariffs, representing a decrease of approximately 55,900 tonnes compared to the previous cycle.

This decision is expected to impact the sugar industry in northeastern Brazil, where producers rely on these preferential rates. Renato Cunha, chairman of the sugar, ethanol, and bioenergy producers association Novabio, estimated that the reduction could result in a loss of at least $30 million in export revenue for the region. While producers may seek alternative markets such as the European Union, Cunha noted that these destinations often do not offer the same price points as the US market.

The redistributed volume will be allocated among 28 other competing countries, including the Dominican Republic, the Philippines, Australia, and Guatemala. Although the cut is significant for regional mills, the US market accounts for approximately 1% of Brazil’s total sugar exports, with China remaining the country's largest destination.