The cost of sugar in the European Union (EU) increased by 61% year-on-year in March, making it one of the most expensive food items. The EU statistical office, Eurostat, announced this in a report released on Friday. Notably, the Czech Republic witnessed the highest year-on-year increase of 98% in sugar prices in the EU. Estonia followed close behind with a 97% increase, while Poland, Germany, and several other countries saw prices increase by more than 70%.
The significant rise in sugar prices across the EU has persisted since August 2021. The year-on-year increase in March 2022 was about six times higher than in March 2021. In the same period, sugar prices rose by 11%, and the year-on-year increase in March 2020 was 1.6%. Meanwhile, Hungary had the smallest increase in sugar prices, with a rise of only 17%.
The sudden spike in sugar prices could be attributed to multiple factors. One reason is a decrease in sugar production in Brazil, the world’s largest sugar exporter, due to a harsh drought. The COVID-19 pandemic has disrupted global supply chains, leading to logistical issues that further contribute to the price rise. The increase in prices of other commodities, such as coffee and cocoa, is also a significant contributor to the overall rise in food prices.