World: Fitch Solutions projects a 2% rise in raw sugar prices in 2023

Fitch Solutions said this Thursday, 23, believe that raw sugar prices should be, on average, 2% higher this year. The estimate is justified by lower production in several regions, including Europe and India, while demand in China should recover. The research arm of credit rating agency Fitch Group says it sees raw sugar rising from an average of 18.6 cents per pound last year to 19 cents this year. Historically high levels are considered a bad omen for policymakers trying to reduce food inflation. On the supply side, Fitch cited uncertainty over European production following the pesticide ban, adverse weather conditions around the world and the continued diversion of sugarcane to ethanol production in India, the world's second-largest sugar producer. . On the demand side, the report cited the relaxation of China's Covid-19 strategy as a positive factor. Still, Fitch's ...