Sugar May Be The Next Supply Shortage We See. Here's Why.

Man, the hits just keep on coming… the worst so far in my opinion is the Baby Formula shortage.

Now we are being warned of yet another shortage and this time its sugar.

India is one of the main producers of sugar and will soon restrict exports.

They will be capping sugar exports at 10 million metric tons according to a statement from the Indian government.

This cap will start on June 1st and stay in place until at least September.

Brazil is the number one producer and exporter of sugar, with India coming in second.

Uncontrolled exports could create scarcity and local prices could spike during festive season.
a senior government official told Reuters on Wednesday

Food inflation in India has risen and even though they do not have a sugar shortage, the inflation rate has put pressure on the government and they are trying to soften the impact.

While India is the second-largest producer and exporter of sugar, they are the largest consumer of sugar.

Sugar prices have risen by 20% in the past 12 months already internationally.

The rise in prices is due to recovering from the pandemic demands as well as supply issues.

Another reason prices have surged is because of global energy prices.

On May 13th India banned wheat exports and in just days sugar will be added to the list.

According to a report from the World Bank, prices of fertilizers and food have risen due to the Russia and Ukraine war.

This is apparently because both Russia and Ukraine are important parts of the global commodities markets, which is where most of the world’s energy, wheat, and sunflower oil come from.