Global sugar prices surge 11.9% in August

Sugar prices jumped 11.9% in August, the largest monthly increase among the main food commodities tracked by the Food and Agriculture Organization of the United Nations. The rise reflects a growing list of threats to production and trade, from weather damage in Europe to concerns about El Niño in Asia.

The FAO said expectations of lower sugar beet yields in the European Union, lower sugar production in Brazil and India’s announcement of duty-free raw sugar imports all contributed to the increase. High temperatures and weather-related risks have added to concerns about supplies, while geopolitical tensions and disruption along major trade routes have further clouded the outlook.

“The FAO Sugar Price Index increased by 11.9 per cent in August,” the UN food agency said. FAO Chief Economist Maximo Torero said, “August’s increase in global food prices is a warning that the risk premium is returning to food markets: climate shocks, geopolitical tensions and disrupted trade logistics are converging to tighten supply expectations, showing that resilience, open trade and secure input flows are now central to global food-price stability.”

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The FAO Sugar Price Index increased by 11.9 per cent in August.

The broader FAO Food Price Index averaged 133.3 points in August, up 1.9% from its revised July level and 2.5% from a year earlier. Cereal prices rose 2.2%, dairy prices increased 2.3%, vegetable oils climbed 1.1% and meat prices rose 1%.

Wheat prices gained 2.6% during the month and stood 15% above their level a year earlier. The FAO cited disruptions to Black Sea export logistics, weaker European production prospects after hot and dry weather, and a weaker US dollar. In a related supply and demand brief, the agency forecast 2026 global cereal production at 2.98 billion tonnes, 2% below 2025 but still the second-largest harvest on record.

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August’s increase in global food prices is a warning that the risk premium is returning to food markets: climate shocks, geopolitical tensions and disrupted trade logistics are converging to tighten supply expectations, showing that resilience, open trade and secure input flows are now central to global food-price stability.