Why is the price of sugar rising?

The rise of sugar price is mainly affected by its low output and large demand. Last year, in the domestic market, Yunnan, Guangxi, Hebei and other major sugar producing areas significantly reduced production, while the demand for sugar in the domestic consumer market continued to grow, and the contradiction between supply and demand was prominent, resulting in a record high sugar price. In addition, due to the influence of abnormal weather in the whole country, especially the snow and ice weather in the south is easy to cause frost, which has a serious adverse impact on the growth of sugarcane. Coupled with the speculation of frost in the market, the price of sugar has continued to rise in the near future. Last year, the main sugar producing areas reduced production, which caused the global supply of sugar to fall short of demand. International sugar prices remain firm, and strong domestic sales and frost speculation will also limit the downside. Although the relevant state departments decided to sell 360,000 tons of state-owned sugar on February1day, this is the third time to sell sugar in the 2009/20 10 cropping season, which has a certain inhibitory effect on the high sugar price in the market, but in the long run, the sugar price may continue to rise in the future.