Global sugar prices hit highest level since June 2025

Global sugar prices rose sharply in August 2026 amid concerns over tightening global supplies. The FAO Sugar Price Index increased by 11.9% from July to 106.4 points, reaching its highest level since June 2025.

One of the main drivers was the deteriorating outlook for sugar production in the EU. Prolonged hot and dry weather, combined with a reduction in planted area, has negatively affected the outlook for the 2026/27 sugar beet crop.

Risks to global supplies are also increasing in other key producing regions. El Niño-related weather conditions are weighing on crop prospects in major Asian sugar-producing countries, while sugarcane production has declined in Brazil’s key Center-South region.

Global prices received additional support from India’s decision to remove import duties on raw sugar, which could stimulate purchases on the international market and increase competition for available supplies.

As a result, the FAO Sugar Price Index gained 11.3 points, or 11.9%, during the month. Market dynamics remain dependent on new-crop prospects in the EU, Brazil and Asia, which will shape the global sugar supply balance in the 2026/27 season.

Tags: prices, sugar, global market