Brasília, 10/20/2003 (Agência Brasil - ABr) - Plans by Japan to reduce pollution by making the addition of alcohol to gasoline mandatory is going to mean revised projections for Brazilian exports of its sugarcane-based alcohol fuel and investments in the sector.

According to the executive secretary of the Ministry of Development, Industry and Foreign Trade, Marcio Fortes, Brazil will have to invest R$2.5 billion in the sector in order to meet Japanese demand. "If as expected the Japanese make an alcohol addition mandatory, Brazil will have to raise its production levels over 6 billion liters per year," he says.

At the moment, Brazilian alcohol fuel production is running at 12.5 billion liters annually and negotiations are also underway for sales to Columbia and India. (AB)