Sugar and corn prices show record surge in Sept: FAO

Global sugar and corn prices experienced a tectonic hike in September though overall food prices remained almost unchanged, said the latest monthly report of the United Nations Food and Agriculture Organisation (FAO).
The FAO Food Price Index(FFPI) averaged 121.5 points in September 2023, almost unchanged from its value in August, as declines in the price indices of vegetable oils, dairy and meat while had offset increases in the sugar and cereal price indices.
After seven months of consecutive declines, international maize prices increased by 7.0 per cent in September amid strong demand for Brazil's supplies, slower farmer selling in Argentina and increased barge freight rates due to low water levels on the Mississippi River in the United States of America.
However, despite the surge, the current price is US$ 223 on an average which was $ 291 a tonne six months back, according to the global portal statistica.com.
Meanwhile, coarse rice prices increased by above 12 per cent in September due mainly to the export restrictions by India.
However, sugar prices spiked to a decade high on rising worries of a global shortage.
The FAO Sugar Price Index averaged 162.7 points in September, up 14.5 points (9.8 percent) from August, marking the second consecutive monthly increase and reaching its highest level since November 2010.
The hike in prices mostly stemmed from increasing concern over a tighter global supply outlook in the upcoming 2023/24 season, said FAO.
It has jumped 19 per cent so far this year to hit the highest level in a decade as reached US $570 a tonne on October 12.
The surge comes amid growing fears of a global supply shortage fueled up by the Indian squeeze in exports by introducing quota system, while other producers do not have strong stockpiles, reported the global portal 'Business Insider'.
Stockpiles in Brazil, the export leader, are low, due to a late harvesting start caused by a significantly rainy season. And supplies are also lagging in Europe, Pakistan, Thailand, China and Mexico.
However, the latest hike in sugar price might cause further surge in prices in the Bangladesh market.
Sugar is being sold at Tk135-145 a kg in Bangladesh marking a 43 per cent surge in last one year, according to the Trading Corporation of Bangladesh (TCB).
Value chain expert Prof Dr Rashidul Hasan said the local market might be hit hard by such tectonic rise.
He said pricy items might be pricier further in coming months.
Market monitoring as well as timely fixation of prices as per the hike or decline in global rates by the agencies concerned are necessary to keep a balance in the market, he said.
He added local maize production showed a tremendous growth while global prices are still much lower for which local feed mills could easily review the feed prices.
Bangladesh consumes above 6.5 million tonnes of maize and 2.2 million tonnes of sugar annually. Of the maize, 75-80 per cent is produced domestically. But the country is totally dependent on sugar import for meeting the gigantic demand.

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