According to the Food and Agriculture Organization, the El Nino weather phenomenon affected production in India and Thailand, sending sugar prices worldwide to their highest level in nearly 13 years in September.
The FAO’s Sugar Price Index increased by 9.8% compared to August, reaching its highest level since November 2010, while global food prices remained stable overall last month.
The central and eastern tropical Pacific Ocean normally see higher ocean surface temperatures during El Nino, a climate phenomenon that happens on average every two to seven years.
According to the World Meteorological Organization of the UN, the phenomenon began in July and can endure for nine to twelve months.
Concerns over a projected tighter worldwide supply for the 2023–2024 season have caused the FAO Sugar Price Index to increase for the past two months in a row.
“This mainly reflects early forecasts pointing to production declines in key sugar producers in Thailand and India due to drier-than-normal weather conditions associated with the prevailing El Nino event,” the Food and Agriculture Organization (FAO) stated.
“Higher international crude oil prices also contributed to the increase in world sugar prices,” it said.
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