The sugar industry in the end of the 17th century

The instability and the royal restructuring policies

Abstract

During the seventeenth century the sugar yields went through a period of strong volubility. At the beginning of the century, the product was in a moment of appreciation: prices soared and the number of mills in Brazil increased significantly. Already in the last quarter of the century the producers faced a totally opposite situation: fall of the prices in the international market and increase in the costs of production. The fall in the prices of the product had as one of its main causes the increase of the supply in the international market, generated by the competition of the sugar produced in the Antilles. The depreciation added to the high costs of the genres necessary for the production of the mills left the lords more and more indebted and many faced difficulties to pay off their debts. As a result of the fall in prices the forgery increased, affecting the reputation of the colony industry. Even with the problems faced, Brazil's sugar remained an important source of resources for the royal coffers, and it was known to the Crown that the high gains from sugar merchant pricing would only be restored with policies that would change the industry. In addition the social structure of the main urban centers of the colony was strongly linked to the sugar culture. In this context, policies to promote the sugar industry are part of a larger set of actions taken by the Crown at the end of the 17th century to promote the Brazilian economy