Brazil’s overall share of the world sugar market, although below the highs of the recent past gradually increase over the outlook period to almost 44% in 2024. Recent policy changes that include the hike in gasoline taxes while maintaining low taxes on ethanol as well as the new 27% blending requirement in gasohol (up from 25%) are expected to provide some relief in the short term to the domestic Brazilian ethanol industry by keeping the ethanol to gasoline price ratio favourable for ethanol use at least in some states. This should imply that in the first years of the projection period the Brazilian ethanol market should remain relatively isolated from the world market with producer prices above international ones. Fuel ethanol use in 2024 is expected to comprise of 17 bln L of anhydrous ethanol and 21 bln L of hydrous ethanol for fuel use.