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Those who plant sugarcane in Brazil are paying R$ 355 more per hectare just because of the rise in diesel prices, and if the price continues to rise, the deficit in agribusiness could exceed R$ 14 billion and put pressure on food prices for everyone.

Published on 22/04/2026 at 00:56
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The increase of more than 23% in the price of diesel in just over a month has already raised the production costs of sugarcane by R$ 355 per hectare, according to data from the Campo Futuro Project and Farsul. The total estimated impact on Brazilian agribusiness is R$ 7.2 billion, but it could exceed R$ 14 billion if diesel prices continue to rise, pressuring margins and food prices.

Those who produce sugarcane in Brazil are feeling the financial impact of a bill that keeps growing. The recent surge in diesel prices, driven by the rise in oil prices amid geopolitical tensions in the Middle East, has accumulated an increase of over 23% in the country in just over a month. With fuel priced at R$ 7.55 per liter in April 2026, the production costs of Brazil’s main crops have already risen between R$ 40 and R$ 355 per hectare, depending on the level of mechanization of each crop.

Sugarcane has the highest absolute impact among all the analyzed crops. The reason is straightforward: it is a mechanization-intensive activity that involves continuous operations of harvesting, transloading, and transportation, all powered by diesel. In the sector aggregation, the increase in fuel represents an additional estimated cost of R$ 7.2 billion for Brazilian agribusiness. If the upward trend continues, projections indicate that this amount could more than double, exceeding R$ 14 billion and turning diesel into a central risk vector for the entire production chain in 2026.

Why sugarcane is the most affected crop by the rise in diesel prices

According to information released by the CNN Brasil, the impact of R$ 355 more per hectare on sugarcane is not random. Among the major Brazilian crops, sugarcane is the one that consumes the most diesel per planted area. Each ton harvested goes through a mechanical cycle that includes cutting, loading onto transloads, and transportation to the mill, and all these stages depend on heavy machinery powered by fossil fuel. Unlike crops such as soy and wheat, where harvesting is punctual, the sugarcane harvest extends over months, multiplying energy consumption throughout the entire period.

This operational profile explains why the same percentage variation in the price of diesel produces such unequal financial effects among crops. While soybeans see an increase of R$ 42 to R$ 48 per hectare and corn varies between R$ 40 and R$ 75, sugarcane absorbs an impact nearly five times greater. Rice also appears among the most affected crops, with an increase of R$ 203 per hectare, due to irrigation systems that increase energy consumption. But it is sugarcane that leads the ranking of vulnerability to fuel prices.

What explains the 23% increase in diesel and what is the relation to the Middle East

The appreciation of diesel in Brazil over the past 40 days reflects a global movement. Geopolitical tensions in the Middle East have raised oil prices in international markets, and the impact reached Brazilian pumps quickly. The country imports part of the diesel it consumes, making domestic prices sensitive to fluctuations in the external market. When the price of oil rises, the cost of production and importation of fuel follows, and the agribusiness bears the cost.

The moment amplifies the problem. The cost shock occurs precisely during the interval between harvest and planting, a period when the demand for agricultural machinery use is at its peak and, consequently, diesel consumption reaches its seasonal highs. For the sugarcane producer, this means that the increase arrives at the time of highest operational expenditure, compressing margins that were already pressured by other inputs, such as fertilizers and pesticides.

How the impact on agribusiness can reach food prices

The survey based on data from the Campo Futuro Project and Farsul shows that the additional cost of R$ 7.2 billion is not an abstract number. It is distributed throughout the production chain and, at some point, reaches the consumer’s table. When diesel increases the transportation costs of grains, the freight of sugarcane to the mill, and the logistics of food distribution, the cascading effect pressures prices throughout the chain, from the field to the supermarket.

Sugarcane is the raw material for sugar and ethanol, two products with significant weight in the consumption basket and inflation. If production costs rise by R$ 355 per hectare, part of this increase tends to be passed on to the price of sugar and, indirectly, to that of ethanol, which in turn influences the price of gasoline. This dynamic creates a cycle where the fuel that increases production costs also raises the final product price that should be an alternative to fossil fuel itself.

The scenario of R$ 14 billion and what it would mean for the field

The most pessimistic estimates indicate that, if diesel continues to rise, the total impact on agribusiness could exceed R$ 14 billion. In this scenario, fuel ceases to be just a relevant input and takes on a central position as a risk vector for production decisions in the sector in 2026. Producers operating with tight margins may choose to reduce planted area, postpone investments in machinery, or seek energy alternatives that are not yet available at scale.

For sugarcane, whose operation depends almost entirely on heavy machinery powered by diesel, adaptation options are limited in the short term. The electrification of harvesters and transshipment is still in its infancy in Brazil, and the replacement with pure biodiesel faces technical and supply restrictions. The practical result is that the producer absorbs the cost or passes it on to the market, and in both cases, the economic impact is real and measurable.

Do you think the government should intervene to contain the rise of diesel and protect agribusiness, or should the market adjust on its own? Tell us in the comments how fuel prices are affecting your region and if you have already noticed a reflection in food prices at the supermarket.

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Maria Heloisa Barbosa Borges

Falo sobre construção, mineração, minas brasileiras, petróleo e grandes projetos ferroviários e de engenharia civil. Diariamente escrevo sobre curiosidades do mercado brasileiro.

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