Rising sugar prices as Indian sugar crop fails – trouble looming for Brazilian sugar ethanol

In Brazil, raw sugar prices have risen to their highest levels since 1981. A 3% rise this week to $0.2155 per pound reflected the failure of the Indian sugar crop as well as rising demand for sugar ethanol in Brazil.

Overall, the Indian sugar crop fell 45 percent for 2008-09 compared to the previous year, and concerns have been raised over potential shortages, with “drastic falls” discussed in the upcoming Indian sugar crop in a report from the BBC that cited low rainfall levels.

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