Sugar in Russia becomes cheaper against the backdrop of a record increase in world prices

Sugar

Russia

Published Apr 12, 2023

Tridge summary

Since the beginning of 2023, world sugar prices have increased by more than a quarter and reached their highest level in 11.5 years. Experts believe that the main reason for such dynamics is the decline in the production of goods in India, Pakistan, Thailand and China. In Russia, sugar has been moderately cheaper over the past few months. According to analysts, the country is currently experiencing an overabundance of sugar, while demand for it remains relatively low. The specialists do not rule out that domestic prices will continue to be depressed until the end of the year.

Original content

Market prices for white sugar in the world have reached a maximum level over the past 11.5 years. On Wednesday, April 12, during trading on the London ICE exchange, the cost of May contracts for the supply of a sweet product rose by 0.6% to $706.9 per ton. The last time such a high value could be observed was in October 2011. In total, since the beginning of 2023, sugar on the international market has risen in price by 27.5%. Experts attribute the observed dynamics to the news about the reduction in the supply of goods from India, Pakistan, Thailand and China. “The production of raw materials in these countries is declining due to both climatic and economic factors. The global balance of sugar is a dynamic process, and a decrease in production by at least one of the major market players always leads to price fluctuations, ”Evgeny Ivanov, a leading expert at the Institute for Agricultural Market Studies (IKAR), explained to RT. In addition, to a certain extent, the rise in oil ...

Source: Russianrt