Sugarcane surplus to push down prices

tonnes, creating a surplus of around six million tonnes.
ICE is a UK firm that regulates futures exchanges and over-the-counter markets for agricultural, credit, currency, emissions, energy and equity index contracts.
Zimbabwe exports at least 40 percent of its raw sugar to the international market.
Sugar is the country’s third foreign currency earner after tobacco and cotton.
Zimbabwe is expecting to harvest 372 000 metric tonnes this year, representing an 11 percent increase from last year’s 335 000 tonnes. The ICE report said sugar surplus would negatively impact prices.
“Raw sugar may drop to less than US$0,20 a pound by year-end as global supply exceeds demand for a second season in 2012-2013,” it said.
Raw sugar on ICE futures lost 27 percent in 2011, the biggest drop in a decade, as traders sold the commodity in anticipation of a second surplus after three shortages.
Some market watchers, however, say the increase in production and subsequent drop in prices may increase consumption and push the prices of items such as soft drinks down.
Presently, the price of raw sugar remains fairly well averaging US$0,24 cents per pound, a  2 percent increase from December’s US$0,23.
Sugarcane growing estates in Zimbabwe include multinationals Triangle, Hippo Valley and Mkwasine as well as Chapiwa, a resettlement scheme where the farmers have about 10 hectares each, and Mpapa, a group of farmers with about 35 hectares each. — New Ziana.