Food security comes under threat as more nations consider limiting exports to cool down surging domestic prices
© Getty Images / Peter Dazeley
Sugar prices are expected to soar due to the export restrictions imposed by a number of key producing nations seeking to tame rising domestic food prices.
The impact of the Covid-19 pandemic, which seriously undermined global supply chains, has been dramatically aggravated by the crisis in Ukraine and the subsequent sanctions imposed on Russia. The conflict between the two major grain exporters has disrupted global supplies.
A number of countries have moved to limit exports of other key commodities, putting global food security under threat, while risking further increases in the prices of agricultural products.
On Monday, Kazakhstan began a six-month ban on white and cane sugar exports. India is reportedly considering placing restrictions on sugar exports for the first time in six years to prevent a surge in domestic prices. India’s ban is expected to target around 10 million tons of this season’s exports.
Last week, Reuters reported that sugar cane mills in Brazil, the world’s biggest producer and exporter of sugar, were canceling sugar export contracts and shifting production to ethanol in an attempt to take advantage of the high energy prices. The estimated cancelations could equate up to 400,000 tons of raw sugar.