Page 38 - MEX-Yearbook-2017
P. 38
Commodity Insights
Sugar
Introduction Fundamental Facts
Sugar is the umbrella term for sucrose, lactose and fructose, which are edible • Increasing population and growing income have a major impact on the
carbohydrates. It is derived from two plant sources, namely sugar cane and
sugar beet. Sugar cane is the main source of sugar in tropical climates, consumption and price trends.
whereas sugar beet can be farmed in much more temperate and mild • It is important to watch global sugar production and global stocks trends
climates, such as those in the United Kingdom. The juices of both of these
plants are processed to produce a wide range of sugars that may be either at all time, as it is the biggest short-term and long-term mover of sugar
white or brown in appearance. Types of white sugars include castor and prices.
pearl, while types of brown sugars include muscovado and piloncillo. There • Events in Brazil and China affect the sugar market as Brazil is the
are a number of sugar commodities traded on global commodity exchanges. world’s largest producer of sugar, and China is the third largest producer;
The largest producer and exporter of sugar is Brazil. India, China, Thailand, magnified by the fact that it has the second largest economy in the world
and Pakistan are major sugarcane producers after Brazil. and the largest population.
• Sugar, most of which is gotten from sugarcane, is highly weather
sensitive. It requires frost-free climate with sufficient rainfall during the
growing season. Therefore, any weather condition that differs from this
is likely to hamper sugar production.
• The increase in international crude oil prices has resulted in an increase
in the demand for ethanol as an alternate source of energy.
• Healthcare regulations are one of the biggest threats to global sugar
consumption. It is found that the consumption of sugar is associated
with diabetes, obesity, and tooth decay. This may lead to the reduction
or elimination of the use of sugar or an increased use of alternative
sweeteners.
37 | MEX NEPAL YEAR BOOK 2017
