Brazil said Wednesday its sugar production will rise 6.5 percent this year while ethanol output will slide by 5.22 percent.
A statement from the Agriculture Ministry based on data from the national crop-forecasting agency Conab said sugarcane production in the world's leading producer could reach 595.13 million tons during the 2012-2013 harvest, up from 560.36 million in 2011-2012.
"Improved weather conditions from the second half of the year in the main producing areas, such as the central-south, makes possible an increased volume of sugarcane for the milling season," an official report said.
Meanwhile the ministry said sugar production would jump 4.72 percent to 37.6 million tons while ethanol production should fall 5.22 percent to 23,620 million liters.
"Production of anhydrous ethanol, for use in a mix with gasoline, should fall 0.88 percent from 9750 million liters to 9660 million," it added.
Sugar ethanol makes up 51 percent of Brazil's fuel market, making this country the leading biofuel exporter and the second biggest producer after the United States.
Brazil is however losing ground there as many producers prefer to produce sugar for export as international prices climb.
The country is self-sufficient in oil but still needs to import derivatives.