Quotations strengthened in all major market segments, but monthly increases were least pronounced (2.6%) for the most traded Indica varieties, amid abundant supplies, particularly in India, a- he declared.
The FAO Sugar Price Index fell 1.1 percent from April as a bumper harvest in India supported global supply prospects.
The weakening of the Brazilian real against the US dollar, as well as lower ethanol prices have put further downward pressure on global sugar prices.
The FAO Sugar Price Index averaged 120.3 points in May, down 1.3 points (1.1%) from April, marking the first decline after strong increases in over the previous two months, the agency said.
The recent monthly decline in international sugar price quotations was triggered by limited global import demand and good prospects for global availability, mainly due to a bumper harvest in India, he said.
Last month, India announced it was banning wheat exports in a bid to control high prices amid fears of wheat production being hit by the scorching heatwave.
Exports of wheat were allowed on the basis of permission given by the Indian government to other countries to meet their food security needs and on the basis of the request of their governments.
Minister of State for External Affairs V. Muraleedharan had told the Ministerial Meeting on the Call to Action for Global Food Security chaired by US Secretary of State Antony Blinken under the US Presidency of the Security Council for the month of May that India is committed to ensuring that this negative impact on food security is effectively mitigated and vulnerable people are protected from sudden changes in the global market. In order to manage our own overall food security and meet the needs of neighboring countries and other vulnerable developing countries, we announced certain measures regarding wheat exports on May 13, 2022.”
Let me clarify that these measures allow for export based on approvals to countries that are required to meet their food safety requirements. This will be done at the request of the governments concerned. Such a policy will ensure that we genuinely respond to those who need it most, he added, stressing that India will play its rightful role in promoting global food security.