Since the start of the year 2022, Bangladesh have been struggling to make ends meet. The Russia-Ukraine war, followed by heavy rains and floods that hampered domestic production of food grains have raised troubles for the Asian nation. Owing to the series of events, the prices of several food and agro-commodities have been on rise in the domestic markets of Bangladesh, pinching the pockets of commoners.
India is the largest sugar producer in the world and the Asian nation ranks second behind Brazil in terms of sugar exports.
Sugar Price Trends Witnessed
On 1st of March, 2023 , the price of sugar surged sharply, with the May NY sugar recording a contract high. Prices will rise as there are indications of limited global sugar supplies. The March 2023 ICE sugar contract, which expired on 28th February 2023, was settled with the delivery of 11, 551 contracts, or about 587,000 MT of sugar. That was the smallest March sugar contract settlement since 2013 and fell far short of the 1.34 MMT required to settle the March 2022 ICE sugar contract, indicating tight supplies. On the 1st of March, May London White Sugar #5 (SWK23) closed at +13.50 (+2.40%), and May NY World Sugar #11 (SBK23) closed at +0.50 (+2.49%).
In a recent letter to the Commerce Ministry, the Bangladesh Sugar Refiners Association (BSRA) submitted a set of proposals with a request to take necessary steps to keep the price of sweetener stable in the domestic market. The proposals were against the backdrop of a recent surge in domestic sugar prices and a supply shortage of the commodity in the local markets in Bangladesh.
The Indian sugar industry is one of the most important agro-based industries in the world. It not only generates Sugar for domestic and international consumption but is also crucial for the livelihood of the rural sector of India. Around 50 million sugarcane farmers as well as 5 lakh workers are dependent on the sugar industry of India for employment. India is not just the largest producer but it is also the major consumer and exporter of sugar worldwide. Thus, it is essential for the sugar industry to generate high revenue for the benefit of farmers and workers associated with the sugar industry.
Philippines To Import 440,000 Metric Tonnes Of Refined Sugar By April To Strike Balance Between Domestic Supply & Demand
To balance domestic supply and demand while stabilizing retail prices, the Sugar Regulatory Administration (SRA) in the Philippines has given the go-ahead to import 440,000 metric tons (MT) of refined sugar no later than April of the current year.
GOI To Decide On Raising Sugar Export Quota In March After Assessing Output Estimate: Mr. Sanjeev Chopra, Food Secretary of India
India is the leading producer and consumer of sugar across the world. It is also the major sugar exporter after Brazil. As per record, the farmers of India have produced around 50 crore tonnes of sugarcane. But sugar export from India has been a sensitive topic for a long time. The GOI is deciding to export more sugar in March 2023 and offers subsidies so that the Indian sugar could compete in the global market against Thailand and Brazil.