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The FAO Sugar Price Index plunged 16.6% to 134.60 Index Points in December 2023, the lowest level in nine months, driven by the strong pace of production in Brazil, bolstered by conducive weather conditions. Strong exports from Brazil, along with lower returns from ethanol sales, contributed to the overall decline in world sugar prices.


In addition, the decision of the Government of India to limit the use of sugarcane for ethanol production in the current season exerted some further downward pressure on prices.


For 2023 as a whole, the FAO Sugar Price Index averaged 145 points, up 26.7% from 2022 and the highest value since 2011 mainly on concerns over a tighter global sugar balance.



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