World sugar prices reportedly surged to their highest level in almost 13 years last month, following the El Nino phenomenon that hit producing countries India and Thailand.
According to the Food and Agriculture Organisation (FAO), although world food prices stabilized overall last month, the FAO sugar price index jumped by 9.8 percent compared to August.
FAO which is an agency of the United Nations (UN) said, the number was the highest since November 2010.
According to it, the FAO sugar price index has now risen for two consecutive months following the realization of heightened concerns over the prospect of tighter global supplies in the 2023 and 2024 seasons.
FAO said it reflects preliminary forecasts showing a pattern of reduced production by major sugar producers namely Thailand and India, due to drier than normal weather conditions, attributed to El Nino.
The UN agency added that higher international crude oil prices also contributed to the rise in world sugar prices.
El Nino, a climate pattern that occurs on average every two to seven years, is typically associated with warming temperatures at the ocean surface in the central and eastern tropical Pacific Ocean.
According to the United Nations World Meteorological Organisation, the phenomenon, which usually starts in July, lasts between nine and 12 months.
Source: Astroawani