Companies that trade and supply sugar reported that global sugar prices have witnessed increases of more than 19% since the beginning of this year until now, according to recent trading data on the London Stock Exchange.

The companies explained to «Emirates Today» that the main reason for the increase in prices is due to the lack of production in countries that supply sugar, especially Thailand, expected that this will also be reflected by additional increases ranging between 4 and 5% until next April, but companies excluded the impact of local markets on the rise in sugar prices Immediately with a large stock, and the intensity of competition increased between companies operating in the sector.

Lack of production and supply

In detail, the director general of the Manly Sugar Trade and Supply Company, Niyaz Hashem Maimon, said that the price of sugar in the global markets has witnessed increases exceeding 19% since the beginning of this year until now, explaining that it has risen from about $ 360 per ton per unit to currently $ 429 per ton .

Memon pointed out that this is due to a lack of production and supply globally, especially from Thailand, whose supply operations have declined by more than three million tons during the recent period, expecting that global markets will witness additional decreases of 4-5% until next April.

He added that it is difficult to determine the impact of this on the local markets now, with the availability of stocks in large quantities, and the intensity of competition among the supplying companies.

Selling prices

For his part, Fouad Khan, Assistant Director General of Warren International, for the sugar trade, agreed with Memon that the lack of production in a number of sugar-supplying countries, especially Thailand, was reflected in raising prices by 19% since the beginning of this year.

Khan also expected that the global markets would witness additional increases until mid-2020, with rates ranging between 4 and 5%, but he ruled out that these increases would be reflected in the retail prices of consumers in the local markets immediately now, with sufficient stock, especially with retail companies. The biggest in the country, in addition to the intensity of competition between retail outlets in offering sugar offers and accommodating any variables.

Gradual increases

In turn, the founder and director of the "Green Leaf" for the trade and supply of sugar, Harshvir Singh Sony, explained that the price increases of sugar globally came gradually since the beginning of this year, with production and supply operations from countries being less in proportion compared to last year, which witnessed large deliveries Reflected on the global price cuts.

Expectations

It is difficult to predict sugar price levels until the end of this year, indicating that it is possible that they will not continue to rise and return to decline before the end of the year, said the founder and director of GreenLeaf, Hershevir Singh Sony.

Sony added that the reflection of these increases on the selling prices of consumers in the retail markets in the local markets will take some time, and is unlikely to appear immediately.

The large stock of sugar in domestic markets and increased competition reflected the failure to raise prices.