BRASILIA, (Reuters) – Brazil has slashed beer duties  to avoid shortages during the World Cup, after local brewers  warned they would be unable to meet surging demand despite  sharply increasing production.

The government said on Wednesday it will cut import levies  on canned beer to 2 percent from 16 percent for the June  tournament, which Brazil will host in 2014.

“The industry itself declared in a letter to the Foreign  Trade Chamber that it won’t be able to satisfy the increase in  demand,” said Anamelia Seyffarth, an official at the chamber,  announcing the cut.

Brazil is the world’s fourth largest beer consumer.

Brazil’s President Luiz Inacio Lula da Silva and his wife  gave the players a send-off at his palace in the capital  Brasilia on Wednesday, hugging the stars and wishing them luck  before they jetted off to World Cup host South Africa.

Bank workers in the nation of 190 million have also been  granted a request to quit work early on days when Brazil plays  so they can watch the games live on television.