Sugar, sugar

Global sugar prices plunged to $14.06 per pound last Monday, a five-year low for the commodity.

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This is exactly half of the $28.12 peak reached in November 2023. For Filipino consumers who have been dealing with years of elevated food costs, the pullback in sugar prices is a welcome break. And just like the easing rice prices we noted in our Aug. 25 “Unli-Rice” article, the downturn in the sugar market gives households some room to breathe after years of tight budgets.

2022 sugar crisis

The current market environment is a stark contrast to December 2022, when the soft drinks industry was hit by a severe sugar shortage. Major bottlers like Coca-Cola, Pepsi and RC Cola were unable to secure enough “bottlers’ grade” sugar, slowing production and even forcing temporary shutdowns at some plants.

For many Filipinos, the sudden shortage of soft drinks became the most visible sign of the crisis. And it struck at the worst possible time, right in the middle of the holiday season when demand usually surges.

P136 then, P82 now