This study aims to analyze the competitiveness and efficiency of the production activity of sugarcane in the states of Mato Grosso do Sul, Minas Gerais e Paraná. For this, it applies the Policy Analysis Matrix, extracting from it the needed information for the analysis. Results show that Mato Grosso do Sul presents the best indicators of competitiveness and efficiency, while Paraná e Minas Gerais present the worst ones, being harmed by economic policies which interfere negatively in sugarcane production.