Sugar and Coffee Prices Surge - Producers Fear Logistical Problems

Beyond the energy sector, the war in the Middle East is now beginning to affect other industries, with raw sugar prices reaching a three-month high.

Concerns are mounting that the world’s largest sugar cane producers—Brazil and India—may shift production towards ethanol at the expense of sugar. Ethanol is used both as a standalone fuel and as an additive to petrol.

Such a shift in production policy is expected to push sugar prices higher. In recent days, they have risen by more than 3%. Coffee prices have also increased, trading between 2.5% and 2.7% higher.

Cocoa prices have recorded a rise of around 2%. In addition to higher fuel costs, experts warn that logistics expenses are likely to increase sharply, as supply chains are rerouted to avoid areas affected by military conflict.