The energy crisis has led to a sharp rise in sugar market prices, as the world’s leading exporters have become more active in processing sugar cane for biofuel (ethanol). As a result, world sugar prices reached a four-year high.
This is reported by ProAgro Group, citing Bloomberg.
On October 1, on the ICE exchange in London, white sugar contracts rose in price by 1.2%, sugar prices since the beginning of the year have increased by 22%. At the same time, the cost of raw sugar futures contracts in New York rose by 1.1%.
The surge in sugar prices began in August, when it became clear that due to frosts in Brazil, which is the largest producer and exporter of sugar, production and supply of raw materials to the world market will be reduced.
India, the world’s second largest sugar exporter, plans to increase its use of ethanol and make it 20% of the country’s vehicle fuel blends by 2025. According to the Sugar Association of India, this strategy could lead to a drop in the country’s refined sugar production as early as next year.
