How to Buy Brazilian Sugar Directly From Brazil: 2025 Buyer's Guide
- writer
- Feb 1, 2023
- 12 min read
Updated: Oct 28
Brazil produces over 40 million metric tons of sugar annually, accounting for nearly 25% of global sugar supply. Yet many international buyers struggle to navigate the complex Brazilian export system, often losing money to middlemen or falling victim to fraudulent suppliers.
Understanding how to buy Brazilian sugar directly from verified sources can save you 10-15% in costs while ensuring consistent quality and reliable delivery. However, the Brazilian sugar supply chain operates differently from other agricultural exports. Sugarcane mills rarely export directly, creating a unique ecosystem of trading companies and export cooperatives.
This comprehensive guide walks you through the complete process of importing Brazilian sugar, from understanding the export structure to securing payment terms and verifying quality. You'll learn the exact steps successful importers use, documentation requirements, typical pricing structures, and critical mistakes to avoid.
Whether you're a food manufacturer sourcing refined ICUMSA 45 or a trader exploring VHP raw sugar, this guide provides the actionable framework you need for successful Brazilian sugar imports.
In This Article:
Understanding Brazil's Sugar Export Structure
Brazil's sugar export system differs significantly from other agricultural commodity markets. Most international buyers expect to purchase directly from production facilities, but Brazilian sugarcane mills operate under specific regulatory constraints that shape the entire supply chain.
The Mill-to-Export Process:
Brazilian sugarcane mills focus exclusively on production. Crushing cane and producing raw or refined sugar. Under Brazilian export regulations, the vast majority of mills do not hold independent export licenses (Registro de Exportadores e Importadores - REI). Instead, mills sell their production to authorized trading companies and export cooperatives.
Approximately 15-20% of larger integrated operations maintain their own trading divisions with export credentials. However, even these entities function as separate trading arms rather than direct mill sales. This structure exists because export operations require specialized expertise in international documentation, shipping logistics, commodity financing, and trade compliance that falls outside core milling operations.
The Trading Company Role:
Authorized Brazilian sugar trading companies serve as the critical link between mills and international buyers. These companies:
Hold proper export licenses (REI registration)
Maintain relationships with multiple mills across production regions
Manage quality control and SGS inspection coordination
Handle international payment terms (Letters of Credit, bank guarantees)
Coordinate shipping logistics from Brazilian ports (primarily Santos)
Provide market intelligence and pricing based on NY #11 and London #5 exchanges
When buyers claim to "buy directly from Brazil," they're actually purchasing from these authorized trading companies—which is the correct and only legal path for most transactions.
Key Takeaway: Legitimate "direct" purchasing means working with registered Brazilian trading companies that source from mills, not attempting to bypass this system entirely. Claims of purchasing directly from mills (unless dealing with the small percentage that maintain export divisions) should raise immediate red flags.
Why Buying Direct From Brazilian Sources Matters
Working directly with Brazilian-based exporters rather than international intermediaries offers several concrete advantages that impact your bottom line and supply chain reliability.
Cost Savings:
Each additional intermediary adds 3-8% markup to your sugar costs. A typical chain might include: Mill → Brazilian Trading Company → International Broker → Regional Distributor → Your Company. By establishing relationships directly with Brazilian trading companies, you eliminate 1-2 markup layers, potentially saving $15-30 per metric ton on bulk orders.
For example, on a standard 12,500 MT bulk vessel order of ICUMSA 45, direct purchasing can save $187,500-375,000 compared to multi-layered intermediary chains.
Quality Control:
Direct relationships with Brazilian exporters allow you to:
Specify exact ICUMSA standards and moisture content requirements
Arrange SGS inspection at the mill or port before loading
Request samples from specific production batches
Establish long-term quality agreements with consistent specifications
Intermediaries often aggregate sugar from multiple sources, making batch-specific quality control difficult and increasing variability in your received product.
Supply Chain Transparency:
When you work directly with Brazilian exporters, you gain visibility into:
Actual production schedules and mill operations
Port congestion and shipping timelines
Weather impacts on harvest (May-November crush season)
Real-time market pricing tied to commodity exchanges
This transparency enables better inventory planning and reduces supply disruptions.
Payment Security:
Established Brazilian trading companies work through recognized international banks with Letter of Credit facilities. This provides both parties with payment protection—you don't pay until inspection confirms quality and quantity, and the supplier receives guaranteed payment upon document presentation.
Intermediaries may require advance payments or less secure terms, increasing your financial risk.
7 Steps to Import Brazilian Sugar Successfully.
Step 1: Verify Supplier Credentials (Week 1)
Before any commercial discussions, verify your potential supplier's legitimacy through these specific checks:
CNPJ Registration: Request the company's CNPJ (Cadastro Nacional da Pessoa Jurídica)—Brazil's federal tax registry number. Verify this 14-digit number through the Brazilian Federal Revenue database. Every legitimate Brazilian company must have active CNPJ registration.
REI Export License: Confirm the company holds Registro de Exportadores e Importadores (REI) certification from Brazil's Ministry of Development, Industry and Trade. This export license is mandatory for legal sugar exports.
Physical Office Verification: Legitimate Brazilian sugar exporters maintain physical offices in São Paulo, Santos, or major sugar-producing regions (Ribeirão Preto, Sertãozinho). Verify addresses through Google Maps street view and request video calls showing office premises.
Trade Association Membership: Check membership in recognized organizations like UNICA (União da Indústria de Cana-de-Açúcar) or local sugar trading associations.
Banking References: Request primary bank details. Established exporters work with major Brazilian banks (Banco do Brasil, Itaú, Bradesco, Santander) that can provide reference letters.
Red Flags: Avoid suppliers who refuse to provide CNPJ, offer only Gmail/Yahoo email addresses, cannot provide office addresses, or pressure immediate payment before credential verification.
Step 2: Understand Product Specifications (Week 1-2)
Brazilian sugar comes in several grades, and selecting the right specification for your application is critical:
ICUMSA 45 (Refined White Sugar):
Color: Maximum 45 ICUMSA units
Polarization: 99.80% minimum
Moisture: 0.04% maximum
Applications: Food manufacturing, beverages, pharmaceuticals
Typical FOB price: NY #11 + $60-90 premium per MT
ICUMSA 150 (Crystal White Sugar):
Color: Maximum 150 ICUMSA units
Polarization: 99.50% minimum
Applications: Industrial use, some food production
Typical FOB price: NY #11 + $40-60 premium per MT
VHP Raw Sugar (Very High Polarization):
Polarization: 96-99%
Used primarily by refineries for further processing
Typical FOB price: NY #11 base price
Request complete technical specification sheets for your required grade. These should detail color, polarization, moisture content, ash content, SO2 levels, and particle size distribution.
Step 3: Request Detailed Quotations (Week 2)
A professional quotation from a legitimate Brazilian exporter should include:
Pricing Structure:
Quantity Details:
Minimum order quantity (typically 12,500 MT for bulk vessels, 300-600 MT for containers)
Packing specifications (bulk, 25kg/50kg bags, 1-ton big bags)
Loading port (Santos accounts for 75% of Brazilian sugar exports)
Quality Assurance:
SGS or equivalent inspection terms
Sampling procedures
Tolerance levels for specifications
Delivery Timeline:
Production/sourcing timeline
Estimated shipping schedule
Laycan (loading dates window)
Request at least three quotations to compare pricing, terms, and professionalism of response. Legitimate exporters respond within 24-48 hours with detailed specifications.
📋 Need a comprehensive import checklist? Get our free Brazilian Sugar Import Checklist to track every requirement from quote to delivery.
Step 4: Negotiate Payment Terms (Week 2-3)
Brazilian sugar transactions typically use one of these payment structures:
Letter of Credit (Most Common for New Relationships):
An LC provides security for both parties. The process works as follows:
Buyer's bank issues LC in favor of seller
LC specifies documents required for payment (Bill of Lading, SGS certificate, commercial invoice, etc.)
Seller ships sugar and presents documents to their bank
Documents are verified against LC terms
Payment releases upon document approval
Typical LC terms: Irrevocable, confirmed, sight or 30-90 day usance. Most Brazilian exporters require sight LCs (immediate payment) or maximum 30-60 day terms for new clients.
Bank Guarantee/SBLC:
For larger buyers with established credit, Standby Letters of Credit provide payment assurance while allowing more flexible document timelines.
T/T (Telegraphic Transfer):
Direct bank transfers (30% deposit, 70% against copy of documents) may be negotiated with established relationships after 3-4 successful transactions. First-time imports should never use full prepayment.
Red Flags: Avoid suppliers demanding 100% advance payment via Western Union, MoneyGram, or cryptocurrency. Legitimate Brazilian exporters work through banking channels with LC facilities.
Step 5: Arrange Quality Inspection (Week 3-4)
Quality inspection is non-negotiable for sugar imports:
SGS Inspection Process:
SGS (Société Générale de Surveillance) is the internationally recognized standard for commodity inspection. Request SGS inspection at loading:
Sampling: SGS collects samples using ISO 2825 standards from multiple points in the shipment
Laboratory Analysis: Tests verify color (ICUMSA units), polarization, moisture, ash content, and other specifications
Certification: SGS issues a certificate of analysis confirming specifications
The inspection typically costs $1,500-3,000 depending on quantity and is usually paid by the buyer but can be negotiated.
Timing: Schedule SGS inspection 3-5 days before loading. The certificate must be issued before the vessel sails, as it's a required document for LC payment.
Alternative Inspectors: Some buyers accept other certified inspectors (Bureau Veritas, Intertek), but SGS is industry standard and most widely accepted by banks.
Step 6: Complete Documentation (Week 4-5)
Brazilian sugar exports require this specific documentation package:
From Exporter:
Commercial Invoice (detailed breakdown of product, quantity, price)
Packing List (number of bags, container numbers, net/gross weight)
Bill of Lading (B/L) - proof of shipment and title document
Certificate of Origin (issued by Brazilian authorities)
Phytosanitary Certificate (if required by destination country)
SGS or approved inspection certificate
Certificate of Quality (mill-issued specifications)
Non-GMO Declaration (standard for Brazilian sugar)
From Buyer:
Letter of Credit (or payment proof)
Import license (if required by destination country)
Purchase Order
At Destination:
Customs declaration forms
Health/safety certificates (destination-specific)
Import duty payment proof
Ensure all documents list identical specifications, weights, and container/vessel details. Document discrepancies can delay LC payment and customs clearance.
For detailed guidance on import procedures, see our How to Order Brazilian Sugar page.
Step 7: Coordinate Shipping & Delivery (Week 4-8)
Shipping Options:
Bulk Vessel (12,500-30,000 MT+):
Most cost-effective for large volumes
Requires discharge terminal with bulk handling capacity
Transit time: 20-45 days depending on destination
Cost: ~$25-45 per MT from Santos to major ports
Containers (300-600 MT per load):
Flexible for smaller quantities or multiple grades
Easier discharge at standard container ports
20-foot containers: ~25 MT capacity
40-foot containers: ~27 MT capacity
Cost: ~$3,000-8,000 per container depending on destination and season
Shipping Terms:
FOB Santos: You arrange and pay for shipping, insurance
CIF (Your Port): Seller arranges shipping and insurance, costs included in price
Timeline Expectations:
From contract signing to delivery at your port:
Document preparation: 1-2 weeks
Production/sourcing: 2-3 weeks (or immediate if stock available)
Loading: 3-5 days
Transit: 2-6 weeks depending on destination
Customs clearance: 3-7 days
Total: 8-14 weeks for first orders
Subsequent orders typically reduce to 6-8 weeks with established procedures.
Understanding Costs & Pricing
Brazilian sugar pricing follows international commodity markets with specific premiums based on grade and terms.
Base Price Reference:
Prices fluctuate daily based on supply/demand, weather forecasts, Brazilian real/USD exchange rates, and global production estimates. As of October 2025, typical ranges:
Brazilian Premium Structure:
Additional Costs (Buyer Responsibility for FOB):
Shipping: $25-65 per MT (destination dependent)
Insurance: 0.3-0.5% of cargo value
SGS Inspection: $0.12-0.24 per MT (depending on volume)
Import duties: Varies by country (check your local tariff codes)
Port handling at destination: $15-35 per MT
Inland transport: Varies
Example Cost Breakdown (ICUMSA 45, FOB Santos):
Container load: 25 MT
NY #11 base: $440 per MT = $11,000
Premium: $75 per MT = $1,875
SGS inspection: $5 per MT = $125
FOB Total: $520 per MT = $13,000
Add shipping, insurance, duties for landed cost at your port.
Price Fixing: Many buyers fix prices when NY #11 reaches favorable levels, locking in rates for 30-90 day shipment windows. Discuss price-fixing strategies with your supplier.
Common Mistakes to Avoid
1. Falling for Below-Market Pricing
If quoted prices are 15-20% below NY #11 + standard premiums, the offer is almost certainly fraudulent. Brazilian sugar pricing is tied to international exchanges—legitimate exporters cannot sell significantly below market rates.
Reality Check: Calculate expected FOB price using current NY #11 + typical premium. Quotes deviating more than $20 per MT should trigger additional verification.
2. Paying Before Receiving SGS Certificate
Never release payment (even under LC) before receiving and reviewing the SGS inspection certificate. Some fraudulent schemes present fake B/Ls or inspection certificates.
Protection: Specify in your LC that payment requires original SGS certificate issued within 72 hours of loading, with results meeting your exact specifications.
3. Accepting "Stock Available for Immediate Shipment"
While legitimate exporters do maintain some stock, be cautious of claims of massive quantities (10,000+ MT) available for immediate loading. Brazilian sugar production is seasonal (May-November peak), and large volumes typically require 2-4 weeks sourcing time.
Verification: Ask for warehouse receipts, specific mill source, and current SGS certificate for claimed stock.
4. Ignoring Supplier's Export History
Request proof of recent export transactions: previous B/Ls (with buyer details redacted), bank references confirming export financing, or reference contacts from past buyers.
Red Flag: Suppliers who cannot provide any evidence of previous exports are likely not legitimate exporters, regardless of documentation they present.
5. Skipping Physical Verification
Especially for large orders ($500,000+), consider visiting the supplier's office in Brazil or hiring a local verification service. The cost ($2,000-5,000) is minimal insurance against fraud risks.
Alternative: Request video calls showing office environment, meeting team members, and discussing operations in detail. Legitimate companies will accommodate these requests.
Essential Documents Checklist
Before, during, and after your sugar import, ensure you collect and verify these documents:
Pre-Contract Phase:
[ ] Supplier's CNPJ registration certificate
[ ] REI export license copy
[ ] Company registration documents
[ ] Bank reference letter
[ ] Previous export B/L samples (redacted)
Contract Phase:
[ ] Detailed quotation with all specifications
[ ] Draft sales contract for legal review
[ ] LC draft for bank submission
[ ] Product specification sheet
Pre-Shipment:
[ ] Pro-forma invoice
[ ] Production/loading schedule confirmation
[ ] SGS inspection booking confirmation
[ ] Vessel nomination (for bulk) or container allocation
At Loading:
[ ] SGS inspection certificate (original)
[ ] Bill of Lading (original)
[ ] Commercial invoice (original)
[ ] Packing list
[ ] Certificate of Origin
[ ] Phytosanitary certificate
[ ] Certificate of Quality
[ ] Non-GMO declaration
[ ] Weight certificate
Post-Shipment:
[ ] All original documents for customs
[ ] Insurance certificate
[ ] Import declaration forms
[ ] Payment confirmation
Maintain complete document files for each shipment—you'll need these for customs, future orders, and financial records.
Frequently Asked Questions
What is the minimum order quantity for Brazilian sugar?
Bulk vessels: 12,500 MT minimum (some accept 5,000-10,000 MT). Containers: 300-600 MT (12-24 containers). First-time importers typically start with containers before scaling to bulk shipments.
How long does the entire import process take?
First order: 10-14 weeks from initial contact to delivery. This includes verification (1-2 weeks), contracting (2-3 weeks), production (2-3 weeks), shipping (2-6 weeks), and customs (3-7 days). Subsequent orders: 6-8 weeks.
Can I visit Brazilian sugar mills or supplier facilities?
Yes. Established exporters arrange mill tours during crushing season (May-November). Facility visits build trust and provide supply chain insight—plan during peak production for the best experience.
What payment terms should I expect as a new importer?
First orders require Letter of Credit (LC) at sight. After 2-3 successful shipments, suppliers may offer 30-60 day LC terms. Established buyers may qualify for T/T terms (30% deposit, 70% on documents). Never accept 100% prepayment demands for first orders.
How do I verify the quality matches my requirements?
Require mandatory SGS inspection at loading in your LC terms. SGS verifies ICUMSA color, polarization, moisture, and all specifications. Payment only releases when SGS certificate confirms product meets your exact requirements.
What happens if the product doesn't meet specifications?
LC protection: If SGS inspection shows non-conformance, documents won't match LC requirements and payment won't release. For post-arrival issues, your sales contract should specify arbitration procedures. Work with established exporters who have reputation and resources to resolve problems.
Ready to Import Brazilian Sugar?
Buying Brazilian sugar directly from verified suppliers gives you competitive pricing, quality control, and supply chain reliability. Success requires careful supplier verification, proper documentation, secure payment terms, and thorough quality inspection.
Key Takeaways:
Verify supplier credentials (CNPJ, REI license, banking references) before any commercial discussions
Use Letters of Credit for payment security on first orders
Require SGS inspection at loading as mandatory LC condition
Understand that "direct from Brazil" means working with authorized trading companies, not mills directly
Expect 10-14 weeks for first imports, 6-8 weeks for subsequent orders
Start Your Brazilian Sugar Import Today
Brazilian Sugar Exporters is a registered Brazilian trading company (CNPJ: [Your CNPJ]) specializing in refined ICUMSA 45 and ICUMSA 150 sugar exports. We work directly with mills across São Paulo state's prime sugar-producing regions.
What we provide: ✓ Complete CNPJ and REI documentation✓ Competitive pricing based on live NY #11 rates✓ SGS quality inspection coordination✓ LC payment terms with major Brazilian banks✓ Bulk vessel and container shipment options✓ Complete export documentation handling
Get started:
📋 Request Detailed Quote – Receive pricing for your specifications within 24 hours
📱 WhatsApp: +558540422622 – Speak directly with our export team
Questions about the import process? Our team has facilitated sugar exports to over 135 countries. We'll guide you through credential verification, LC setup, and documentation requirements. Contact us today.
Related Articles:
ICUMSA 45 vs ICUMSA 150: Which Grade Do You Need? – Compare specifications and applications
Understanding Sugar Inspection: SGS Process Explained – Complete guide to quality verification
Brazilian Sugar Market Analysis 2025 – Current pricing, production forecasts, and export trends
Avoiding Sugar Import Scams: Red Flags to Watch – Protect yourself from fraudulent suppliers
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