Written & Drafted By Shafeek Ahmad, Published On 19-November-2023, Sunday, 02:19 AM EST.
In a dire predicament, Nigerian bakers, grappling with soaring costs of sugar, fuel, and flour, are facing tough decisions that could have widespread implications. The surge in sugar prices, up by 55% in just two months, is impacting the production of a staple for Nigeria’s 210 million people: bread.A market vendor organizes bundles of sugar in Jakarta, Indonesia, on October 24, 2023.
The Sugar Price Surge: A Global Phenomenon
The current sugar crisis stems from lower global supplies, primarily attributed to dry weather damaging harvests in major exporting countries like India and Thailand. This surge in sugar prices is the latest blow to developing nations already contending with shortages in staples and trade bans, contributing to food insecurity.
El Nino and Its Impact on Global Sugar Production
The El Nino phenomenon, exacerbating extreme weather conditions, has played a significant role in disrupting sugar production. India, experiencing its driest August in over a century, is expected to see an 8% decline in sugar production. Thailand, too, faces a 15% dip in output.
Brazil’s Role and Delayed Relief
Brazil, the largest sugar exporter, is forecasted to have a 20% larger harvest, offering relief globally. However, the impact won’t be felt until March due to Brazil’s position in the Southern Hemisphere.
Immediate Challenges for Import-Dependent Countries
Import-dependent countries like Nigeria, purchasing 98% of its raw sugar from abroad, are grappling with immediate challenges. The 55% increase in sugar prices within two months poses a threat to businesses and raises concerns about food security.
“It is a very serious situation,” says Ishaq Abdulraheem, a Nigerian baker, highlighting the severity of the crisis for businesses and consumers alike.
“The price keeps increasing every day, and we don’t know why,” expresses Abba Usman, an Abuja trader, echoing the concerns of many facing the daily impact of rising sugar prices.
- The United Nations Food and Agriculture Organization predicts a 2% decline in global sugar production in the 2023-24 season.
- Brazil’s larger harvest in 2024 is expected to alleviate global sugar supplies, but relief won’t be immediate.
- Import-dependent countries like Nigeria and Indonesia are vulnerable to the impact of soaring sugar prices.
The surge in global sugar prices is pushing Nigerian bakers to make tough choices, impacting both businesses and consumers. With challenges ranging from El Nino-induced disruptions to delayed relief from Brazil’s harvest, the sugar crisis highlights the vulnerability of import-dependent nations and raises concerns about food security on a global scale.
The global sugar crisis underscores the urgent need for strategic measures to stabilize prices and ensure the availability of this essential commodity. As nations grapple with the complex interplay of climate factors, trade policies, and economic challenges, finding sustainable solutions becomes paramount.
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Disclaimer:- This news article was written by the help of syndicated feed, Some of the content and drafting are made by the help of Artificial Intelligence (AI) ChatGPT.
About the author: Shafeek Ahmad is a freelance writer passionate about business and entrepreneurship. He covers a wide range of topics related to the corporate world and startups. You can find more of his work on Howtobeaspoonie.com.