Duty-free imports, other factors raise sugar prices
The Food and Agriculture Organization of the United Nations (FAO) reported that global sugar prices jumped 11.9 percent in August compared to July, due to a combination of factors. Lower sugar beet yields in the European Union were cited due to adverse weather conditions. El Nino's impact on production in key Asian producing countries and a decline in sugar output in Brazil also contributed to the price surge.
Additionally, India's announcement of duty-free raw sugar imports likely played a role. The FAO Sugar Price Index rose 11.9 percent in August, the highest monthly increase among major food commodity groups tracked by the organization. The broader FAO Food Price Index averaged 133.3 points in August, up 1.9 percent from its revised July level and 2.5 percent from a year earlier.
FAO Chief Economist Maximo Torero warned that high temperatures, weather risks, geopolitical tensions, and disruptions to trade routes were raising concerns over global food supplies, indicating that the risk premium is returning to food markets.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
