Global Sugar Crisis: Prices Soar, India in Turmoil
India is experiencing a severe drought that is damaging sugarcane harvests, leading to a sharp rise in prices during the festival season. The government is forced to import sugar, and the increase of ethanol blend in fuel is sparking anger among drivers.
India is experiencing its worst monsoon season in 11 years, with nearly half of its territory declared under drought conditions by the end of September. The severe damage to sugarcane harvests has led to a sharp price increase during the Hindu festival season, when traditional sweet consumption peaks. Candy store prices have jumped by 10 percent, and protests have erupted across the country. The Indian government has had to warn traders against hoarding, and in an unusual step for a country that typically exports sugar, it has opened its doors to imports this year, pushing global prices even higher. Meanwhile, India has raised the ethanol blend in fuel to 20%, but drivers complain that the blended fuel damages older engines and reduces driving range. Rising sugar prices are forcing India to rely more on corn and rice for ethanol production, but these crops have also been severely affected by heat and drought, putting supply chains under a complex resilience test.