Sugar, once one of the sweetest areas of the commodities sector, is now turning bitter. Prices have hit a seven-year low as key drivers for the commodity, which can be used either to sweeten food or to produce ethanol biofuel, have gone into reverse. Such is the state of the sugar cane market that local media in India have reported a rise in the number of sugar cane farmers committing suicide in the country’s main cane-producing belt because processing mills are refusing to pay producers pre-agreed prices. Globally, sugar prices are trading at around 10.6 cents per pound. Despite farmers cutting back production and bad weather adversely affecting harvests in some areas, the market is expected to remain in surplus into next year. This is happening even though food manufacturers are using more sugar to make products such as lemonade, ketchup and chocolate, according to Commerzbank research. However, the International Sugar Organization (ISO) published new forec
