By , Lagos
The global sugar price has dropped by 5.24 per cent Year-to-Date (YtD) to $20.62/pound, aligning with the Economic Intelligence Unit (EIU)’s forecast of a 9.82 per cent decrease to $21.13/pound in 2024 from $23.43/pound in 2023. This is as sugar price in Nigeria rose by over 100 per cent during the same period, said Bismarck Rewane, Chief Executive Officer (CEO) of Financial Derivatives Company (FDC) Limited.
This decline is attributed to increased sugar production in Brazil, one of the top global producers.
“However, this global price reduction is not reflected in the domestic market, where prices have more than doubled, soaring by 102.38 per cent to N85,000 (50kg) in February compared to N42,000 in November 2023. The surge in domestic prices can be traced to elevated import costs, fueled by the continuous depreciation of the naira against the U.S. dollar” he a said in a commodity publication made available to Blueprint yesterday.
According to foreign trade statistics, Nigeria relies on imports for 90 per cent of its raw sugar materials, constituting 1.86 per cent of the total imports in the third quarter of 2023.
Despite the production of sugar by Dangote sugar refinery, prices are expected to remain high as demand outweighs supply. The price of Brent declined by 0.24 per cent, reaching $82.18 per barrel from $82.38pb yesterday.
A cautious outlook on oil demand from China primarily influenced the decrease. Investors remain uncertain about China’s demand prospects, partly due to the absence of significant stimulus plans to support the country’s struggling economy.
