Heat waves could push sugar prices up, making sweets and pastries more expensive

European consumers may soon be spending more money on sweet treats as the current heat wave has pushed sugar prices up.

Sugar buyers and producers are currently negotiating contracts for the 2023-2024 harvest season, which begins in October, with prices currently set at $1, Bloomberg reported, citing sources. It has risen to more than 1,000 euros per tonne. That’s more than double what it was in the middle of last year. As a result, the cost of sweet snacks will rise.

The drought has reduced sugar production and reduced inventories. Experts say higher costs are likely to be passed on to consumers. “The big question is what will happen in the next few months: Will it rain or just drought?” said John Stansfield, a sugar expert at analyst firm DNEXT Intelligence. talk.

Earlier this year, sugar prices had already climbed to their highest level in more than 11 years. This is because shipments from India, a major exporter, were lower than expected. Shipments from Pakistan and Thailand were also disappointing.