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He said state-run oil marketing companies were in talks with Brazilian firms for cane farming and ethanol production.
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It's not a trend line that's particularly encouraging," she said.
Brazil is the world's biggest sugarcane grower and a leader in gasohol usage with up to 25 percent blending.The agency is weighing changes to the federal Renewable Fuel Standard (RFS), the federal program that requires the blending of ethanol with gasoline.