Crop problems caused by rain in Brazil and India, the top producers of sugar, may cause sugar prices to rise, reported Reuters. In addition to the rains, the conversion of sugar cane to ethanol biofuel in Brazil has lowered the country’s sugar supply.
The International Sugar Organization (ISO) predicts that as of this month, the supply of sugar will equal around 70 million tons (8-9 million more than last year). In September 2009, however, the ISO estimates the supply to decrease to two to three million tons.
As a result of the rising sugar prices, multiple companies, such as Guyana Sugar Corp. (according to Agence France Presse) and Bombay Sugar Merchants’ Association (according to the Press Trust of India Ltd.) have suspended the trading of sugar to select countries or to all countries.
Sugar prices may rise
September 19, 2008