Brazil nears ethanol stock launch

By | July 01, 2002
Brazilian millers are close to creating a 1 billion-liter strategic stock of cane-based ethanol to guarantee supplies, a senior government official said this month. The stock, which would be privately financed, was agreed in principle in May but its launch has been delayed by disagreements over funding and a need for more mills to participate. In 1989, a breakdown of ethanol supplies destroyed Brazilian consumer confidence and led to a collapse in sales of specially designed vehicles, fueled by hydrous alcohol.