Heat waves drive up sugar prices, sweets and pastries may become more expensive

European consumers could soon be spending even more money on sweet treats as current heatwaves drive up sugar prices.

Sugar buyers and producers are currently negotiating contracts for the 2023-2024 harvest season, which begins in October, and prices have now risen to more than 1,000 euros per ton, Bloomberg news agency reports based on sources. That's more than double what it was in the middle of last year. As a result, it will drive up the cost of sweet snacks.

Because of the drought, sugar production is down and inventories are dwindling. Experts say the higher costs will likely be passed on to consumers. "The key question is what happens in the next two or three months. Do we get rain or just drought?" said sugar expert John Stansfield of analyst firm DNEXT Intelligence.

Earlier this year, sugar prices already rose to their highest level in more than 11 years. That was because India, a major exporter, delivered less than expected. Shipments from Pakistan and Thailand were also disappointing.