The price of sugar may continue to rise

In addition to the increase in global demand, the weather conditions in the main sugar-producing regions are not helping the crop either. India, the world’s second-largest sugar producer, is bracing for export restrictions due to crop failures, while Brazil, the world’s largest sugar producer, had a good crop. India experienced its worst monsoon season in five years, and other Asian producing countries such as Thailand, China and Pakistan also had weaker crops compared to the previous season. The situation is aggravated by the fact that the sugar beet harvest in Europe was also low due to the decreasing area sown and the summer drought.

International news already indicates that India may introduce restrictions on its sugar exports due to crop failure. If this happens, it will further reduce the supply of sugar on the market, which may cause further price increases. Prices have already risen 35% this year and are currently at a 12-year high. The longer-term development of the price of sugar is influenced by population growth, income growth, changes in the price of sugar and alternative sweeteners, and trends towards a healthy lifestyle. According to the Food and Agriculture Organization of the United Nations, FAO, global sugar consumption may increase by an average of 1.1% annually over the next ten years, primarily due to population growth and income growth.