The Food and Agriculture Organization (FAO)’s sugar price index was up 7.3 points in February 2025 after three consecutive lackluster months.
In its monthly global food price tracking report on March 8, FAO put the index of the sweetener at 118.5 points.
Though showing monthly strength, the index is still down 22.2 points or 15.8% from the February 2024 equivalent.
This way it reflects the overall retraction of sugar prices in world markets at -5% in the past 5 years since 2020.
The February rally is notable however for it indicates a harvest downturn in the world’s number two sugar producer, India.
FAO points out that the price rebound also rides on the wave of dry conditions in the world’s largest producer, Brazil. Although Brazil still expects a record crop in the 2025-26 season, the recent dry spell has sent futures markets worrying.
Market Prices march on in March
Notably, markets are inclining up a few days after the report. Barchart, for instance, relates how technical factors such as weather and large purchases suddeny buoyed market prices on March 10.
The revamp solidly redeems the recent price slump on March 6 that had accrued to a crude oil ripple effect.
On the 10th, sugar #11 (unrefined) in London gained 0.54% day-on-day while sugar $#5 (white) in New York upped 1.12%. But even though sugar #11 in NY hit $18.85 a pound at closing, its rebound did not breach the crucial $19 mark.
Other Supporting Index Items
While the FAO Food Price Index itself advanced by 1.6% from supporting factors, sugar had support from complementary foods.
One of these that features in sugar products is cereal, up 0.7% month-on-month, to 112.6 points.
Another is vegetable oil, up by 2% to 156 points, mainly due to increasing palm, soy and canola oil quotations.
Dairy, a common sugar product ingredient, also rose the highest by 4% to 148.7 points. It owed the rally to mainly uptick international cheese quotations.
In totality, the sugar price index’s increase in February 2025 had marginal market effect for spot prices remained below $19 per pound. But as the statistics below indicate, the sugar index has had sharp swings in the past two decades.
2000-2025 Sugar Index Statistics
Between the year 2000 and 2025, the FAO sugar price index showed sharp volatility roughly every five to six years. Below are the succinct details of each swing:
2000: at the turn of the millennium, the sugar index ranks second lowest among all food categories at 50.6 points.
2006: after wallowing at the bottom of the food index for four consecutive years since 2002, the sugar index finally tops the 2006 list at 91.4 points.
2007: a year later in 2007, sugar sharply founders again to the bottom of the list at 62.4 points.
2011: five years after finding the top, sugar returns to the top at 161.9 points in 2011.
2015: the sweetener again bottoms out in 2015 at 83.2 points before it rules food classes in 2016 at 111.6 points.
2018: six years after its 2011 climax, the sugar index falters to rock bottom at 77.4 points and will not recover till 2020.
2023: five years afterward in 2023, sugar is back in the picture at number one among food classes at 145 points.
2025: through the first two months of 2025, the sugar index trails all others apart from cereal and meat at 118.5 points.