Sugar has been in news lately. After the stunning report which was published on Clamorworld, detailed out how sugar industry actually paid key researchers to underplay sugar’s role in heart diseases way back in the 60s, the latest point of concern is a sugar tax that has been levied in South Africa.
In a bid to rein in the rising obesity conditions in South Africa, the Government has proposed to impose a special 20% tax on all types of sugary drinks to curb diabetes and obesity. Coca Cola understandably have come out with its concerns and requested a review. We believe this is just a beginning given the wide range of drinks that have a fairly large sugar input. The overall assessment pegs that as many as 70,000 jobs could be at stake as a direct fallout of this tax. But what will be the stance taken up by the sugar industry and It will no doubt be a key point to watch out for especially given the performance of sugar in the commodity market. What’s the possibility of another deal ensuing to keep the demand graph pointing north even at the cost of public health?
Yes sugar is on a high in terms of price performance..Sugar prices in India surged to 4-year highs and given the global sentiment and forecasts of deficit supply globally, experts believe that prices may continue to hover around current levels. Industry players there are two main reasons for it, apart from the fact that crops are bad in Asia, including India, China and Thailand, there is no longer an artificial pressure on Brazilian producers to produce less ethanol and more sugar. Infact in the past 12 months, the pricing policy in Brazil underwent a drastic change and is now market determined. This came at a time when oil is at $50 a barrel globally, less than half its peak. This fact led to ethanol prices shooting up to their peak.
But apart from the pricing structure and demand-supply scenario, the overall role of sugar and how it’s being manipulated globally is an interesting and disturbing aspect that we are trying to tackle on Clamorworld. We will continue to bring forth to light several other stories unfolding n various parts of the world on this issue.