UAE Sugar Prices Set to Stabilize with Anticipated Indian Imports

In recent months, sugar prices in the UAE have surged by up to eight percent, mirroring the global trend. 

The spike is attributed to a worldwide increase in sugar prices, causing fluctuations in local markets.

India’s Export Initiative to Influence Local Market:

India’s decision to export sugar via the National Cooperative for Exports Ltd (NCEL) aims to alleviate global supply constraints. 

By directly engaging with farmers and bypassing intermediaries, this initiative seeks to stabilize sugar prices, benefitting importing nations like the UAE.

Dr. Dhananjay Datar, Chairman of Al Adil Trading, anticipates a positive impact on local prices once Indian sugar enters the market. 

The UAE primarily sources sugar from Brazil, but the imminent arrival of Indian stock is expected to ease the current price surge.

Global Factors Affecting Prices:

The current surge in global sugar prices stems from reduced supplies due to adverse weather affecting harvests in major exporting countries like India and Thailand. 

Projections by the UN Food and Agriculture Organization indicate a 2 percent decline in global sugar production for the upcoming year.

Kamal Vachani, Group Director at Al Maya Group, highlights the UAE’s historical reliance on sugar imports from Brazil, India, Thailand, and Europe. 

He suggests potential diversification by exploring sugar imports from Mexico, Australia, and emerging African producers to stabilize prices.

UAE’s Adequate Sugar Stock and Future Prospects:

Assurances from industry experts, including Dr. Datar and Vachani, indicate the UAE’s comfortable position concerning sugar stocks. 

While acknowledging Brazil as a significant supplier, they point out potential markets like Thailand and Germany for additional sugar imports, ensuring market stability.