Why is sugar cheap?

Economies of scale: Sugarcane and sugar beet crops are grown on a large scale, allowing for economies of scale in production and harvesting. This means that the cost per unit of sugar produced is relatively low.

Government subsidies: Many governments provide subsidies to sugar producers, which keeps the cost of sugar artificially low. These subsidies are often intended to support domestic sugar industries and protect farmers.

Competition: There is intense competition among sugar producers worldwide, which drives down prices and keeps sugar affordable for consumers.

Technological advancements: Advances in farming techniques, irrigation, and harvesting technologies have increased the efficiency of sugar production, leading to lower costs.

Byproducts: Sugarcane and sugar beets can be used to produce a variety of byproducts, such as molasses, ethanol, and bagasse. These byproducts generate revenue for producers, further reducing the overall cost of sugar production.

As a result of these factors, sugar is relatively cheap compared to many other commodities.