Sugar supply likely to fall as unusual weather hits the globe

Source: The Star Online



PETALING JAYA: Sugar is expected to be in short supply worldwide this year because of freak weather.

This is expected to keep the price of the commodity high.

Raw sugar traded in the New York futures market has risen 86%.

Bad weather in India and harvesting delays and crop damage in Brazil – the world’s largest producer of sugar – have contributed to lower supply of the commodity.

India is battling its worst drought in 83 years.

On the domestic front:

> Supplies continue to run low at many sundry shops in the Klang Valley but stocks are starting to reappear in super and hypermarkets,

> Other parts of Malaysia seem to be adequately stocked with sugar,

> Authorities blame local sugar refineries for cutting back on production after over-producing in the first half of the year.