European consumers may soon pay more for sweet cakes and treats as the current heat waves push up the price of sugar.
Sugar buyers and producers are currently negotiating contracts for the 2023 and 2024 crop seasons, which begin in October. Prices have now risen to more than 1,000 euros per ton, Bloomberg news agency reports based on sources. That’s more than double what they were halfway through last year. It will increase the cost of sweet snacks.
On to consumer
Due to the drought, sugar production is falling and stocks are declining. According to experts, the higher costs of this are likely to be passed on to consumers. “The crucial question is: what will happen in the next two or three months. Will we get rain or just drought,” says sugar expert John Stansfield of analyst firm DNEXT Intelligence.
Earlier this year, sugar prices rose to the highest level in more than eleven years. That was because India, a major exporter, delivered less than expected. The supply from Pakistan and Thailand was also disappointing.