Global Sugar Prices: Many countries of the world are facing the crisis of food shortage for almost a year. This time the victims of the crisis are not only developing or poor countries, but many big economies are also gasping for food. Now all the analysts were expecting relief on this front that instead of sweetness, sugar has made the taste bitter. The situation is such that now the fear of food crisis due to sugar is deepening. There is a continuous increase in the price for the last few days. Due to this, its premium over raw sugar (jaggery or khand) has reached a six-month high. White sugar, the most active contract in London, rose 0.2 per cent, while raw sugar prices in New York fell 0.7 per cent. The gap between the two is now the widest since September 2022, leading to profit margins for processors. The outlook has improved.
Low yields due to these reasons
The news states that sugarcane yields in many countries are worse than expected. Because of this the buyers are facing problems. Low fertilizer use in Thailand, high rainfall in India and drought in many parts of Europe, Mexico and China have resulted in lower sugarcane yield estimates, which will ultimately result in lower sugar supply.
These signs are already visible
Thailand is the fourth largest producer of sugarcane in the world. Quoting Thai Sugar Millers Corp in the news, it has been told that 5 out of 57 millers in Thailand have already stopped crushing sugarcane, as they are apprehensive of low yield. Egypt and Algeria have taken various measures to stop the exit of sugar from their respective markets.
No relief from Brazil
One thing of relief for the global market There is supply from Brazil, but in the report of Bloomberg, it is feared that the supply from Brazil will be able to give special relief. In the news, Michael McDougall, Managing Director of Paragon Global Markets, says that although Brazil is the largest supplier of raw sugar, Brazil’s production of refined ie white sugar is low.
Read also: < a title ="Due to these 5 families, inflation hit the poor! Former deputy-governor of RBI said – breaking the solution" href ="https://www.abplive.com/business/top-five-conglomerates-are-controlling-everything-need-to-break-them-says-former-top-central-banker-2371275" target="_blank" rel ="no opener">Due to these 5 families, inflation hit the poor! Former Deputy-Governor of RBI said- Breaking is the solution
Get the more latest Business news updates