USDA says Sugar Prices May Stay High in 2012
FoodNavigator’s Confectionerynews.com says that the United States Department of Agriculture (USDA) indicates sugar prospects for the future will probably stay higher than in the past when the original reform measures were being considered. A USDA report cited external factors such as government policies, oil prices and instability in the Eurozone.
"The Indian production cycle and government policies are the main source contributing to an expected continuation of world sugar price variability. Government policies that intervene in sugar markets are assumed to continue," it said.
Projections from the Organization for Economic Cooperation and Development (OECD) from 2011/12 through to 2020/21 put the average price of sugar at $518.5 per metric ton (U.S.), which is 48% higher than the $349.5 per ton average from the earlier period.