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The economic and social development of a country or a region does not proceed, or is only assessed in quantitative terms, but primarily in quality. Within this last perspective, there is not any objective reason for the State of São Paulo to have more than half of the sugar plantations of the country. Sugarcane is the main crop that occupies the largest cultivated land area in São Paulo. Everything indicates that these are distortions and irrationalities that to be fought on behalf of technical progress, harmony and a balanced environment; there is a need for land decentralization of land, increased and diversified crop production in the State. In context, we are experiencing an expansion phase of the alcohol market, internal and external, which has led the State of São Paulo to occupy – according to data from the 2006/07 season, to 5.5 million ha with sugarcane, responsible for approximately 60% of domestic production of sugar and ethanol. What are the potential impacts of this growth? Selected issues relating to concentration of land and an environmental impacts, labor relations, and competition with other factors of production, indicate that it can create difficulties to the productive system. These problems cannot be solved by the free market forces alone, but require the active interIMPACT OF THE SUGAR-ETHANOL SECTOR:

IMPACT OF THE SUGAR-ETHANOL SECTOR: THE ISSUES GUIDING SUSTAINABLE EXPANSION