Global Market Price of Raw Sugar Hits 20-Month High

New York. Global market prices for raw and white sugar are witnessing a sharp surge due to concerns that production will decline under the influence of El Niño. Over the past week, the price of raw sugar rose by 15 percent, reaching a 20-month high.

Industry analysts suggest that the intensifying strength of El Niño is likely to impact sugar production in the top three producing nations: Brazil, India, and Thailand. Notably, Brazil and Thailand are also the world's leading sugar exporters; a drop in production there would reduce the global supply and availability of sugar.

The India Meteorological Department (IMD) has forecast below-normal rainfall across most parts of the country during the October-December 2026 quarter. This is expected to lower sugarcane yields and the average sugar recovery rate from the cane. At ICE New York, the futures price for raw sugar (for the March contract) has climbed to 20.35 cents per pound.