UPDATE 1-Brazil may not introduce 16% biodiesel mix into diesel on deadline, official says

(Adds quote, context on policy in paragraphs 3-7) By Roberto Samora SAO PAULO, Oct 6 (Reuters) – Brazil may not be able to raise the mandatory biodiesel mix in diesel to 16% from 15% within a government-set deadline of March 2026, an official from the Brazilian Ministry of Mines and Energy said on Monday. Marlon Arraes, director of biofuels at the ministry, said during an industry event in Sao Paulo that there may not be enough time for the government to finalize the needed studies to implement the measure. "It’s possible that we won't be able to meet the March deadline. It’s highly challenging," Arraes said, adding the government has yet to finalize a report to be able to implement the new phase of the policy. Brazilian law mandates a gradual increase in the biodiesel mix of one percentage point per year, potentially reaching 20% by 2030. The official declined to give a timeline for introduction of the 16% mandatory mix. The potential postponement of the deadline would mainly impact the soybean oil industry, as the oilseed is used to produce more than 75% of Brazil's biodiesel. The 15% mix, which was supposed to become mandatory in March this year, was only implemented in August, with the country's government citing inflation concerns. According to the official, the legislation requires that any increase in the blend be conditioned on technical feasibility studies, which are ongoing. (Reporting by Roberto Samora in Sao Paulo; Writing by Andre Romani and Fernando Cardoso; Editing by Nia Williams and Lincoln Feast.)

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