Sugar prices to double in 18 months as Brazilian ethanol and Indian cutbacks take effect

In India, economists are projecting that India will reduce its sugar production 16 percent in 2009. With the use of sweeteners on the rise in India and China, and Brazil expected to use 57 percent of its sugar crop for ethanol production, sugar prices are primed to rise substantially next year. Analyst Jonathan Kingsman of Kingsman SA projects that sugar prices will rise 28 percent next year to 18 cents per pound, up from 14.06 cents this week on the ICE Futures exchange. Morgan Stanley is projecting that prices may double in the next 18 months.

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