Due to the drought, the price of sugar rose more than 25%

by times news cr

2024-04-13 07:38:15

The production of the sugar cane harvest in Mexico 2023-2024 is experiencing a significant decrease due to drought, which raised the prices of the sweetener by 20%, warned the Agricultural Markets Consulting Group (GCMA).

Juan Carlos Anaya, president of the consultancy, revealed that with the current progress of the harvest, a reduction in 9.16% in the production. While at this time last year we had 5 thousand 224 million of tons as of March 2024 we dropped to 4,746 million metric tons.

The decrease of the production has hit the cost of sugar in the national market, “a 50 kilo package in the supply centers reaches one thousand 122 pesoswhen in this same period last year it cost only a thousand pesos, up to 25% more due to the lack of the product.

Anaya pointed out that due to a lower production, An estimated import from abroad is 435 thousand tons.

“In addition, it is estimated that total exports during this harvest will be 615,335 tons, with estimated sales at Manufacturing, Maquiladora and Service Industry from exportation (IMMEX) of 300 thousand tons, plus the opening quotas.”

He Agricultural Market Consulting Group He pointed out that these data reflect the significant impact that the drought is having on the production of the sweetener, which can influence prices of other products in the national market.

Anaya asked federal authorities to monitor the situation and take measures to mitigate the effects on the industry and the economy in general. A price monitoring taken in the Mexico City, Guadalajara y Monterrey for him GCMA recorded that retail sugar increased up to 25% at an annual rate, averaging 35.52 pesos per kilo, in wholesale stores, but there are small stores in the country where the product costs up to 55 pesos, while last year it was on these same dates at 28 pesos per kilogram.

It was explained that even with the tariff of 360 dollars per ton, imported sugar is entering the national market, due to the high price in the local market, and thus avoiding the possibility of a shortage.

But on the other hand he explained that decrease exports It can increase supply and also prevent prices from rising within our market, a fact that is being complicated at the moment.

The agri-food production analyst considered that prices will remain high for the remainder of the year since the production of the sugar cane harvest according to Conadesuca 100 thousand fewer metric tons are expected to reach just 4.6 million metric tons this 2024.

WATER STRESS?
An analysis of HR Ratings He revealed that the agricultural sector is the main consumer of water in the country, which is why he stated that investments are needed to achieve more sustainable agriculture.

In the first half of March, 83.7% of the municipalities in the country had some kind of drought.

In the report “Water stress and its main causes in Mexico”, where, according to data obtained from With water and the National Metereological Service, The rating agency highlights that Mexico had an average water stress of 31.3% from 2010 to 2017 and a strong increase is shown in 2018 a 44.5%. Mexico is close to having only half of the water available, he noted.

2024-04-13 07:38:15

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