Global sugar industry crisis feared as dry El Niño spell starts hurting

The Food and Agriculture Organization of the United Nations (FAO) was predicting a global decline of sugar by about 2% as the commodity was currently trading at its highest price on record.

This estimate followed the world’s largest importers of sugar in Asia, Thailand and India suffering damaged crops due to the dry weather caused by El Niño. A market researcher for the FAO said that the 2% decline was predicted to affect the world’s sugar production compared to previous years, and this translated to a loss of more than three million tons.

The FAO said that the world’s largest importer of sugar was Brazil, but that despite a good harvest, the country would not be able to fill the gap for the shortage in 2024 and beyond. This impacted most of the sub-Saharan African countries that relied on imported sugar.

India’s Ministry of Agriculture said that the country suffered its driest spell in August this year, which stunted the growth of crops in the western regions. The Indian Sugar Mills Association said in a statement that as a result of the dry spells, the country’s sugar production was predicted to decline by close to 10% this year. The association said that, with India’s large population, the government had also restricted sugar exports to meet local demands.

The third-largest exporter of sugar in the world, Thailand, was also expecting a drastic drop in tonnage of sugar cane to be milled in 2024.

According to the US Department of Agriculture, who dealt with Thailand in terms of sugar imports, a predicted 15% decline was expected.

The FAO said: “The next few months are the greatest concern. Population growth and rising sugar consumption will further strain sugar reserves.”

WIKIMEDIA COMMONS The sugar cane harvest in Brazil increased while the rest of the world saw a decline due to dry weather conditions.