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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 17

FY2021/FY2022 SUGAR OVERVIEW

Raw Sugar NY11 prices in FY2021 was trending higher, ranging between
14.0 to 20.0 US cents per pound. The higher prices were primarily a result of
permafrost weather conditions in Brazil, and also contributed by sugar millers
switching to ethanol production, supply chain disruptions, and supply shortage
MSM is from Thailand due to extreme drought. MSM is expected to close the year at an
average price of 15.5 US cents per pound. Moving on to FY2022, the price outlook
is bullish mainly due to projected recovery of Brazilian crops for the next 12 months,
currently stronger demand from post-pandemic recovery and bullishness of crude oil price.
MSM is currently embarking on sustainable sourcing of raw sugar under
embarking on No Deforestation, No Peat, No Exploitation (NDPE) and will continue to do so
moving forward.
sustainable

sourcing of raw Brazil is predicted to produce about 36 million tonnes for the
FY2021/FY2022 season. It is a fall of 6.1 million tonnes as a result
sugar under of dry conditions and frosts. Due to Brazil’s importance as a
producer and exporter, this reduction is expected to have a major
No Deforestation, Brazil influence on world sugar supply and prices, hence exports are also
being expected to drop sharply on lower available supplies.
No Peat,

No Exploitation India’s production is estimated to be around 34.7 million tonnes
for the FY2021/FY2022 season, a 3 percent increase from last
(NDPE) and will season. Exports are expected high at a near record level of 7 million
tonnes due to higher than average world prices and high supplies
continue to do India even without its government export subsidies.

so moving
Thailand’s production is estimated to rebound nearly one-third to
forward. 10 million tonnes for the FY2021/FY2022 season due to greater
area harvested, higher sugarcane yields and favorable weather.
Exports from Thailand are forecast to more than double to slightly
Thailand less than 10 million tonnes due to the recovery in production in this
season.

United States is estimated to produce a record 8.4 million tonnes
as beet sugar is projected to be a record high. Imports are down
5 percent to 2.8 million tonnes based on projected quota
programmes and the calculation of U.S. needs as defined in the
United U.S. - Mexico Suspension Agreements.
States

Source: United States Department of Agriculture, Sugar: World Markets and Trade
(November 2021)