OREANDA-NEWS The price of white sugar futures on the London stock Exchange rose by 4.7 percent to $ 705.5 per ton. This is the maximum level since 2011.

Prices for this product have shown a record increase in more than a decade due to declining supplies from India, Brazil, Pakistan and Thailand. Due to the rise in oil prices, Indian factories may send more cane raw materials to ethanol production, Bloomberg reports. Also, due to the internal price increase, New Delhi may restrict exports this season.

Supplies from Brazil are declining due to a spike in gasoline prices in the country, which also forced consumers to switch to biofuels and ethanol. As a result, a significant part of sugar cane goes to the production of these goods, and the supply for the food industry is reduced.

According to the analyst of the consulting company Agriturismo Francois Tori, rising sugar prices increase the cost of the production of confectionery and pastries, which have already risen in price due to increased spending on energy, fuel and labor. So, in the UK, they have already felt the rise in price of sweets and drinks.

In Russia, the average cost of sugar increased by 27 percent in 2022. Since the beginning of 2023, prices have continued to rise, despite increased beet production and restrictions on supplies abroad. The Federal Antimonopoly Service (FAS) has even begun to check the supply chain of sugar to stores in order to understand the unjustified price increases and the creation of artificial shortages.