Paraguay Regulates the Ethanol Law to Boost the Domestic Market

(Paraguay Ministry of Industry and Trade/Bnamericas) The president of the Republic, Santiago Peña, signed the regulatory decree of the Ethanol Law, which regulates Laws No. 7357/2024 and No. 7391/2024, with a focus on strengthening domestic production and directly benefiting sugarcane growers, guaranteeing a minimum of 50% sugarcane origin for the alcohol blend in fuels, thereby establishing protection for its market.

The signing of the decree was attended by the head of the Ministry of Industry and Commerce (MIC), Marco Riquelme; the minister of Agriculture and Livestock, Carlos Giménez; the minister of the Civil Cabinet, Javier Giménez; the president of Petropar, William Wilka; the governor of Guairá, César Sosa; as well as mayors and other authorities from the area.

During the event, the head of state highlighted that the regulation constitutes a key measure to boost the productive development of sugarcane and create opportunities. In this context, he acknowledged the efforts of the country’s sugarcane growers and workers, and reaffirmed the commitment of the Government of Paraguay to job creation and the strengthening of national production. President Peña also emphasized that the regulation will make it possible to prioritize the use of cane alcohol, driving economic development, and maintained that joint work will continue to be essential to achieve new milestones in the sector.

For his part, the minister of industry and trade, Marco Riquelme, pointed out that the signing of the decree marked a milestone for the sugarcane sector, as it represents a historical debt settled with producers. He indicated that the measure defines a model of country based on industrialization, import substitution and the generation of value from domestic raw materials.

Meanwhile, Minister Riquelme emphasized that this new regulation guarantees a market for producers by establishing that 50% of the alcohol used in fuels must come from sugarcane. He also stated that this decision will create new opportunities for small farmers and help improve their production conditions. Likewise, he urged sugarcane growers to increase production and take advantage of the new scenario, assuring that the Government will continue to provide support with financing and training tools.

It is worth mentioning that the regulations establish control mechanisms to ensure compliance with the mandatory blend of anhydrous alcohol in fuels, prioritizing the use of ethanol derived from sugarcane produced in the domestic market. This seeks to generate sustained demand for the sector, providing greater predictability and consolidating a more protected market.

The decree regulates the provisions related to Article 7 of Law No. 5.444/2015, amended by Law No. 7357/2024, aimed at verifying compliance with the percentages of acquisition and use of anhydrous alcohol in the mixture with fuels. It also establishes the administrative provisions necessary for the implementation of Law No. 7391/2024, which introduces a penalty regime for possible non-compliance.

As part of the new regulatory framework, tools are being incorporated to strengthen transparency and organization in the sector, including a more rigorous control system and a schedule that will make it possible to organize the supply of absolute alcohol by volume and type of raw material, facilitating production planning.

The regulation aims to generate a virtuous circle in the rural economy, promoting the industrialization of sugarcane, adding value to national production and reducing dependence on imported inputs. In this way, the production chain is strengthened, job creation is boosted, and the strategic role of the sugarcane sector within the country’s energy matrix is consolidated.

The Ministry of Industry and Trade acts as the enforcement authority, with responsibility for oversight, inspection, and the application of sanctions, in order to ensure compliance with regulations throughout the entire chain. READ MORE