Global market price of sugar rises due to fire in Brazil

02-Sep-2024 02:56 PM

New York. The fire in the forests of Latin American country Brazil has spread to sugarcane producing areas, which is likely to affect the production of sugar and ethanol there.

As a result, the futures price of sugar is likely to rise in New York and London Exchange.

The futures price of raw sugar is expected to increase the biggest weekly increase after January in the New York Exchange.

The weather in Brazil is already dry and hot, which is affecting the sugarcane crop. Now this fire has worsened the situation further.

According to industry and trade analysts, due to this fire, sugar production in the central southern part of Brazil may fall by 3.40 to 3.70 lakh tonnes. According to a leading organization,

global sugar production in the 2024-25 season may be about 36 lakh tonnes less than its use.

Sao Paulo is the most prominent sugar producing province in Brazil, where about 60 percent of the country's sugar can be produced.

The fierce effect of this fire is being seen there. Its effect seems certain to be on the production of next year as well. Sugarcane crop has been damaged in a very large area.

On the last trading day of last week, the futures price of raw sugar first fell by 1.3 percent but later started recovering.

According to critics, after the export of sugar from India was stopped, the global market is now becoming increasingly sensitive towards the production and export of Brazil.

The new season of crushing sugarcane and production of sugar is going to start in India from next month,

but it seems that the government's intention is to increase the domestic production of ethanol instead of opening the export of sugar. The sugar production season in Thailand starts in December.