The president of Brazil's Conab (Companhia Nacional de Abastecimento - National Supply Company), Jacinto Ferreira, says that the production of almost 17 billion liters of sugarcane-based ethanol (fuel alcohol) is more than sufficient to guarantee domestic demand and have a little left over for exports.

Ferreira made the declaration as he announced that the 2005/2006 sugarcane harvest will reach 436.8 million tons, an increase of 5.1% over the last harvest.

However, the sugarcane harvest only begins in April and there have been some concerns about domestic supply between now and when the harvest begins. Ferreira says the government is aware of the situation and is studying measures to ensure that there are no problems.

ABr

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