Global sugar prices hit 13-year high due to El Nino fallout: FAO
Business
The FAO’s Sugar Price Index jumped by 9.8pc compared to August
PARIS (Reuters) - Global sugar prices soared to their highest level in almost 13 years in September as the El Nino weather phenomenon hit production in India and Thailand, the Food and Agriculture Organization said Friday.
While world food prices steadied as a whole last month, the FAO’s Sugar Price Index jumped by 9.8 percent compared to August, the highest point since November 2010, the UN agency said.
El Nino, a climate pattern that occurs on average every two to seven years, is typically associated with warming ocean surface temperatures in the central and eastern tropical Pacific Ocean.
The phenomenon, which can last between nine to 12 months, started in July, according to the UN’s World Meteorological Organization.
The FAO’s Sugar Price Index has now risen for two consecutive months due to increasing concerns over a tighter global supply outlook in the 2023-2024 season.
“This mainly reflects early forecasts pointing to production declines in key sugar producers, Thailand and India, due to drier-than-normal weather conditions associated with the prevailing El Nino event,” the FAO said.
“Higher international crude oil prices also contributed to the increase in world sugar prices,” it added.
