The government will nationalize biofuel production

The Federal Government will update the rules for the Social Biofuel Stamp, to ensure that half of purchases of this product come from family farming. Among the changes is the nationalization of production, especially for states in the northern and northeastern regions, including also semi-arid regions, such as the Jequitinhonha Valley, in Minas Gerais.

The restructuring of the seal will be published in a presidential decree, after the final version of the text is submitted to President Luiz Inacio Lula da Silva.

According to the Ministry of Mines and Energy, the new text brings more transparency and strengthens the requirements for granting and maintaining the instrument by biofuel producers, as well as benefiting the local agricultural profession, “improving income.” And the quality of life of family farmers in vulnerable areas.

Among the measures to stimulate national production is the expectation that the mixture of biodiesel with fossil fuels will rise to 14% as of April, and 15% between 2025 and 2026. It is expected to reach 25% in subsequent years, informed Minas State Minister of Energy. Alexandre Silveira, this Wednesday (10), in a ceremony in which he presented some details of the decree.

With the mixture increased to 14%, the ministry expects an increase of 3.05 million tons in soybean processing to produce biodiesel, which will directly reflect the demand for small farmers. Tax incentives are also provided for those who produce biofuels.

In addition to the restructuring of the social biofuel stamp, the decree will enable investment in Brazilian agribusiness and the fuel sector. “In 2024, it will be 740 million Brazilian reais, and in 2025, 1.6 billion Brazilian reais,” the minister said.

diversification

Minister of Agricultural Development and Family Farming, Paulo Teixeira, who also attended the event, said that among the challenges the government anticipates is diversifying the products that can be used to obtain biodiesel, a fuel that can be extracted from castor seeds and beans, as well as corn, soybeans and sunflowers. Sugarcane and babassu. The range of options might include, for example, the macauba palm tree, which is widespread in the northeastern region.

The proportion of purchases in the north, northeast and semi-arid regions will increase in stages until it reaches 20% of the total, said MDA’s Innovation Director for Family Production and Agroecological Transformation, Vivian Liborio de Almeida.

“Currently, the program serves 54,000 families annually. The number of families is expected to reach 70,000 families, especially in the north, northeast, and the semi-arid region.”

According to Paulo Teixeira, “President Lula considers this topic one of his favorites.” The government is also studying ways to reduce the cost of energy used to irrigate crops. “PV can bring down energy prices. We need to think about reasonable tariffs,” he added.

alliance

Antonio Cardoso, President of the Family Farmers and Solidarity Enterprises Cooperative and Director of the National Federation of Family Farming and Solidarity Economy Cooperatives, said the seal represents an alliance between family farming, cooperatives, entrepreneurs, the solidarity economy, government and national industry.

“Sealing dismantles legal insecurities and redefines the industry map, because it represents a great opportunity to bring family farming to the north-eastern, northern and semi-arid region. Strengthening the national industry will reduce the need for imports. In this context, new industrialization involves understanding the role of family farming .

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