Global sugar prices at highest level since 2011 due to El Nino
People in developing countries are facing a dire situation due to the skyrocketing price of sugar. The price of sugar in the international market has increased by 55 percent in the last two months. Worldwide sugar prices are at their highest level since 2011.
India and Thailand, the world’s second and third largest sugar exporters, have seen global supplies collapse due to unusually dry weather damaging sugarcane crops.
This situation is even more painful for developing countries that already face shortages of staple foods such as rice. Due to which food inflation has increased.
Food insecurity has increased due to naturally occurring climate change El Niño, the war in Ukraine, and a weak currency. Rich countries in the West can afford higher costs, but people in poorer countries are struggling to make ends meet.
According to the estimates of the United Nations Food and Agriculture Organization, worldwide sugar production may decline by two percent in 2023-24. According to Fabio Palmieri, Global Commodity Market Researcher of FAO, if production decreases by two percent, global sugarcane production will reduce by 3.5 million tonnes.
Global sugar stocks are at their lowest since 2009, as sugar is also used in large quantities in fuels such as ethanol. According to Indian Sugar Mill Association, sugar production in India will decrease by eight percent this year.