Leading US food groups like Hershey, Mars and Krispy Kreme Doughnuts have warned the Obama administration that the country could "run out of sugar", which means jobs could be lost unless bans on import are relaxed.
The food producers warned in a letter to the Obama administration that unless import quotas are increased, there could be a serious shortage of sugar used in chocolate bars, breakfast cereal, cookies, chewing gum and thousands of other products.
From the Telegraph:
US sugar prices are trading near 30-year highs on growing concerns about
India, the world's second-largest sugar exporter, has seen falling output
after lower-than-expected rainfall during the monsoon season. While
production in Brazil, another key producer, has been hit by too much rain.
As a result, the supplies of sugar are getting tighter as Asia increases demand ahead of the annual festival season. While US processors have been operating while keeping the market supplied, sugar inventories in the country have now hit a 34-year low.
Sugar shortages could mean that consumers may have to pay more and jobs will be at risk.
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