Since the second half of last year, domestic sugar prices have been rising. In January last year, the price of sugar was still more than 2,600 yuan per ton. In July, the price of sugar per ton began to exceed 3,000 yuan. In December, the price of sugar per ton rose to 4,800 yuan. By February around the Spring Festival, the price of sugar per ton even reached It cost more than 5,700 yuan, which is like "changing every day and skyrocketing." Although sugar prices have continued to fall since mid-February, the magnitude of each reduction is still small. Today, sugar prices are still hovering around 5,200 yuan per ton, compared with 2,800 yuan per ton in March last year. The increase is still very large. In early February, information came from the China Sugar Association that the China Sugar Association had submitted an observation report on the domestic sugar market to the National Development and Reform Commission and other departments. The China Sugar Association said that based on the current situation of the domestic sugar market, in order to stabilize domestic sugar prices, at least nearly 1 million tons of sugar need to enter the market, and recommended that the country mobilize nearly 1 million tons of national reserve sugar and sugar imported from Cuba. market. Since November last year, sugar prices have been rising from around 3,600 yuan, and there is still no downward trend. Jiangxi is a major sugar producing area. Currently, the local sugar price is more than 5,000 yuan per ton. According to China Sugar Network's monitoring of sugar prices in major sugar production and sales areas across the country, sugar prices in Jinjiang, Shanghai, and Chengdu have also maintained an upward trend, with the lowest price per ton being more than 5,000 yuan. From a global perspective, international sugar prices are rising sharply. "Today's sugar price in New York is 15 cents/pound (processed equivalent to RMB 5,300/ton), which is the highest price in recent years." The rise in international sugar prices is partly due to production cuts in major sugar-producing countries. In the United States, sugar production in sugar cane-producing areas has been reduced due to previous hurricanes, and the actual reduction may be greater than expected. In addition, affected by the unprecedented drought in decades, sugar production in Thailand and Cuba continues to decline. On the other hand, it is because a large number of funds are speculating on sugar prices. Brazil's sugarcane output failed to meet expectations, which also played a supporting role in the continued rise in international sugar prices. In addition, the determination of the EU sugar industry reform plan also affected the sharp rise in international sugar prices. The EU's large-scale reduction of sugar industry subsidies not only means that after May, the EU's annual sugar exports will drop sharply from the current 6-7 million tons to 1.5 million tons, but its sugar production scale may also shrink to only 1.5 million tons. To meet the level of internal market demand, this will free up space for the international market to absorb the huge Brazilian sugar production, slow down the pressure on the international sugar market, and ultimately push international sugar prices to rise further. The domestic reason is mainly that the price of sugarcane in Yunnan, Guangxi and other places where it is produced has increased. Hainan, one of my country's major sugar-producing areas, suffered from severe drought and typhoon last year, with production reduced by about 50% compared to 2004, which was the lowest sugar production in several years. The purchase price of sugarcane has risen from about 160 yuan/ton to the current nearly 300 yuan/ton. Due to the rain, sugarcane sugar mills have delayed the start of crushing for about 20 days on average. In addition, some sugar companies are reluctant to sell, and some sugar raw material supply and manufacturing companies take the opportunity to drive up sugar prices, resulting in a tight supply of sugar in the market.