International Sugar Prices Remain High Until November 2023

International sugar prices remain high. This price increase has been observed in previous months.

According to the ICE London futures price benchmark compiled by *Investing.com*, white granulated sugar reached US$757.10 per ton at the close of trading on Thursday (9/11/2023). This is a 1.08% increase from the previous day's US$749 per ton.

Looking at the graph, the London benchmark price actually fell three times since entering November 2023. However, the rest was dominated by increases, even reaching US$763.40 per ton on Monday (6/11/2023). This was the highest price in the last month.

Similar to November, October 2023 also saw mostly price increases for sugar. The highest price recorded was US$746.60 per ton on Wednesday (25/10/2023).

Despite price decreases on several trading days, sugar prices remain high. Citing *Katadata* in June, the increase in global sugar prices skyrocketed due to several factors.

An FAO report stated that the development of the El Niño phenomenon is raising concerns about its impact on the 2023/2024 sugarcane harvest. On the other hand, global availability in the 2022/2023 harvest season was lower than previously estimated.

Another factor is the reduction in exports by one of the world's sugar giants, India. Exports fell from 11 million tons to 6.1 million tons this year. This policy is based on an estimated production decrease from 35.8 million tons to 32.8 million tons in 2023.

"We are not now asking the government to allow more exports in the current season. We know that is not possible," said an official from the Indian Ministry of Industry, as quoted by *Reuters*.

In addition, OPEC's cut in oil production by 1.16 million barrels per day is encouraging several countries to boost bioethanol production.

For information, bioethanol uses sugarcane as its raw material. This could impact the availability of sugarcane for sugar consumption.

This situation has impacted Indonesian sugar prices. This is because Indonesia is still dependent on sugar imports.

This was confirmed by the Director General of Domestic Trade (Dirjen PDN) of the Ministry of Trade, Isy Karim.

Citing *Kompas.com*, Isy stated that the high price of sugar in Indonesia is due to the high international sugar price. Indonesia, which still relies on imported sugar, has no choice but to follow the world sugar benchmark price.

"Indeed, the price of sugar internationally is high, and we, unfortunately, import everything, so the price is high here," Isy told the media in Jakarta on Wednesday (8/11/2023).

(Also read: National Sugar Prices Continue to Climb Until November 2023)