The Chamber of Deputies approved a bill on Tuesday (the 27th) that introduces tax benefits for sugarcane production in the northeast of the country. The goal of this project is to mitigate the effects of tariffs imposed by the United States on the export of this product. The bill is now being sent to the Senate for consideration.
The adoption of this project occurred just before a temporary measure issued by the federal government in July on the same issue was set to expire.
The Chamber's President, Hugo Motta (Republicanos-PB), noted: 'We brought this project to the agenda because we have an existing temporary measure whose term expires tomorrow, and we have numerous sugarcane producers from the northeast who have not yet been able to receive this subsidy.'
The bill allows for a payment of 12 reais per ton of cane produced and verifiably delivered to factories, distilleries, or cooperatives located in the northeast during the 2025/2026 season.
Financial support can be provided directly to producers or through cooperatives and associations. However, support cannot be provided to producers who are partners, directly or indirectly, with distilleries or cooperatives that accept sugarcane.
Furthermore, the project maintains the provision allocating up to 10 billion reais from the Union's financial surplus for a funding line for agricultural technology dissemination projects.