Why are global sugar prices rising while domestic prices continue to fall?

VINAGRI News - Global sugar prices are rising due to the impact of geopolitical tensions and escalating energy costs, while the domestic market continues to decline. Abundant supply from domestic production, imports, and smuggling keeps Vietnamese sugar prices low, putting significant pressure on the sugar industry. According to the International Sugar Organization (ISO), raw sugar and white sugar prices on the futures market have increased, mainly due to geopolitical tensions in the Persian Gulf region. Rising oil prices have increased transportation costs and also increased the demand for sugar cane for ethanol production in some countries like Brazil, thereby reducing the output of commercial sugar. The ISA index shows that the average price of raw sugar in March reached about 15.00 cents/pound, the highest in five months and up from the previous month. White sugar prices also rose to about 432.69 USD/ton. In Southeast Asia, the rising trend in prices has also been noted. In ...