El Niño effect: Sugar prices rise around the world and harm the poorest countries

Stratospheric sugar prices have left Ishaq Abdulraheem with few options. Increasing the cost of bread would mean declining sales, so the Nigerian baker decided to cut his production in half. For dozens of other bakers struggling to make ends meet while facing higher fuel and flour costs, exorbitant sugar prices proved to be the last straw, and they closed their doors for good. Sugar is needed to make bread, a staple food for Nigeria's 210 million people. For many who are struggling to put food on the table, it offers a cheap source of calories. The sudden increase in sugar prices – 55% in two months – means fewer bakers and less bread. “It’s a very serious situation,” Abdulraheem said. Sugar is trading globally at the highest prices since 2011, mainly due to dwindling global supplies after exceptionally dry weather conditions damaged harvests in India and Thailand, the world's second and third biggest exporters. This is just another blow to developing countries already dealing ...