The article discusses the current state of the sugar industry, focusing on the impact of high sugar prices and the potential exacerbation of this situation by the El Niño weather phenomenon. It highlights the plight of sugar farmers, such as Balraj Chavan in Western India, who have been adversely affected by the forces driving up sugar prices. India, the world’s second-largest sugar exporter, faced a reduction in exports due to weather-related crop damage, leading to financial losses for farmers. The arrival of El Niño poses a significant threat, potentially causing droughts that could further hinder sugar production, consequently impacting both farmers and consumers. Our senior sugar analyst John Stansfield said ““[ElNiño] will undoubtedly be treated as a bullish signal by the global sugar markets”.
Source : www.barrons.com