Sugar price to go up

THE global shortage of sugar means that prices would only go up. Abnormal weather conditions in India, China, and parts of Brazil contributed to underproduction. Normally surplus in sugar, India had to import. Also Indian farmers have moved to produce other crops for better returns. This contributed to a 40 per cent drop in production. Sugar cane price in India increased by 24 per cent, making it an unattractive crop to farm, when the prices of other crops increased by 72 per cent.
For bad weather, China too had a low sugar yield. China reported that its output dropped by 12.9 per cent from January to May of this year, compared to the same period in of last year. China's decline is on par with global figures.

Md. Alamgir Hossain
International Division
Mercantile Bank Ltd
E-mail: alammblid@yahoo.com>