Global market price of sugar will depend on Brazil's production

30-Aug-2024 05:05 PM

Sao Paulo. Sugarcane crushing is going on vigorously in Brazil, the world's largest producer and exporter of sugar, but some such incidents are happening there which can affect the sugar production.

There is a massive fire in the forests of this Latin American country, which has started affecting the sugarcane crop in Sao Paulo province. It may be noted that Sao Paulo is the largest sugar producer state in Brazil.

Due to the deteriorating situation in Sao Paulo and other nearby sugarcane producing provinces, the price of sugar has increased in the international market.

The futures price of raw sugar in the New York Exchange for the October contract increased by 0.56 cents per pound (2.94 percent) and the futures price of white sugar in the London Exchange increased by 22.30 dollars per ton or 4.24 percent.

Earlier, the futures price of raw sugar had reached the highest level in the last five weeks on August 28.

According to an industry organization, sugarcane crop has been affected in about 60 thousand hectares of area in Sao Paulo province due to forest fire.

Due to this, sugarcane production is expected to fall by 50 lakh tons. About 90 percent of sugar in Brazil is produced in Central South, while about 60 percent of production is done by Sao Paulo province alone.

The industry-business sector is busy assessing the damage to the sugarcane crop. According to an analyst, it will be necessary to see how much damage has been caused to the sugarcane crop.

It will take time to assess this. But if there is a possibility of a huge decline in the production of sugarcane and sugar in Brazil, then it will definitely affect the global market because commercial export of sugar from India is already closed.