World Food Price Index up for 11th straight month

Adjusted for inflation, the FAO Food Price Index (FPI) was up 2 percent from March, up slightly from the 12-month average growth of 1.7 percent. This increase was supported by robust gains for the sugar, meat, and oils subindexes, although every category appreciated in [...]

World vanilla supply recovery continues

The continued recovery in global vanilla production, along with improved quality of 2019/20 beans, has brought prices below half their peak, near $600, seen a few seasons ago. Madagascar’s government has set a price floor of $250 kg for its vanilla beans, and the [...]

Strong February gains for the Food Price Index

FAO reported the February Food Price Index (inflation adjusted) up almost 15 percent from January. The index saw gains for nine straight months and is now at its highest point since 2011. Every single subindex gained in February, with the strongest gains seen for [...]

Will supply disruption affect the honey market?

One of the fastest-growing exporters of honey to the U.S. has been India, and India has been our largest honey supplier since 2017, when it displaced Vietnam from the top spot. U.S. imports from India grew 12 percent by volume in 2019 over 2018, [...]

Selling into weakness at decade lows is seldom a winning strategy

The #11 world sugar market has trended lower throughout most of 2019. The bears have been chasing a surplus crop in India as well as lower quality stocks of Thai raw exports that have caused weakness in nearby tape. Compounding the move lower, speculative [...]

Corn starch bioplastics could be useful in India

Prime Minister Narendra Modi is leading an effort to ban plastics in India. On Oct. 2, plastic bags, cups, plates, small bottles, straws, and other single-use plastic packaging will become banned in India, according to multiple sources. Modi’s goal is to ban single-use plastics [...]

India sugar export subsidy, ethanol price hike approved

Export subsidy policy continued: India’s Cabinet Committee on Economic Affairs (CCEA) approved an export subsidy of Rs. 10,448 per MT (around US$6.63 cents per cwt) for 2019/20 exports. Total cost is officially estimated at Rs. 62.68 billion (more than US$875 million). Despite objections—WTO complaints—from [...]

India reserve sugar stocks, double down on subsidies?

India’s government may not just maintain current export subsidies but expand them to cover other shipping and marketing costs, according to off-record sources. The main impetus for the move, of course, is the desire to reduce domestic sugar stocks and support sugar pricing, the [...]

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