Sugar prices have increased for the first time in almost three decades. Prices were stable or declining for more than 20 years, and the last time prices increased this much was in 1976, said Donal Day, Audubon Sugar Institute professor. Raw sugar in Louisiana historically sold for 20 cents per pound, and that number has increased to more than 33 cents, Day said. “The sugar market is not local,” he said. “It’s global.” Increased demand from India and China coupled with a smaller Indian crop — the second biggest producer of sugar after Brazil — acted to raise prices 10 to 15 cents per pound for raw and refined sugar, Day said. Brazil, which produces mostly sugar by-products such as bio-ethanol, will probably switch to refined sugar production to balance the demand, he said.When sugar prices drop, Brazil will be able to easily switch back, Day said. But the price jump will probably be temporary, he said. “I suspect this is a one-year run-up because of unusual circumstances around the world,” he said. Next year, farmers will plant more sugar and prices will stabilize, Day said. Lousiana farmers did not anticipate the increase, he said. However, Louisiana farmers will not see higher profits because much of the 2009 crop was already pre-sold, said Alfred Guidry, LSU AgCenter county agent in St. Martin Parish.  Any increase in price won’t be reflected in income until next year, he said. Individual consumers probably won’t notice the increase because it’s so small, Guidry said. The United States produces 80 percent of the sugar demanded in the country, Guidry said. As a nation, the price increases may prove to be more significant.  Worldwide sugar consumption for 2009-2010 is expected to increase 4 percent from 2008-2009, according to data from the U.S. Department of Agriculture Office of Global Analysis.  If increased demand is not met with increased supply, prices may continue to rise, Day said.____Contact Olga Kourilova at [email protected]