PARIS: Global sugar prices soared to their highest level in almost 13 years in September as El Nino weather phenomenon hit production in India and Thailand, Food and Agriculture Organisation said.

While world food prices steadied as whole last month, FAO’s Sugar Price Index jumped by 9.8 percent compared to August, highest point since November 2010, UN agency said.

El Nino, climate pattern that occurs on average every two to seven years, is typically associated with warming ocean surface temperatures in central and eastern tropical Pacific Ocean. Phenomenon which can last between nine to 12 months, started in July, according to UN’s World Meteorological Organisation.

FAO’s Sugar Price Index has now risen for two consecutive months due to increasing concerns over tighter global supply outlook in 2023-2024 season.

“This mainly reflects early forecasts pointing to production declines in key sugar producers, Thailand and India, due to drier-than-normal weather conditions associated with prevailing El Nino event,” FAO said. “Higher international crude oil prices also contributed to increase in world sugar prices,” it added.

Published in The Daily National Courier, October, 07 2023

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