The first recordings of real sugar extraction came from West China in the early 1700's. Cultivation spread into Northern India, and then westwards along the trade routes. Eventually Spaniards spread the cultivation of sugar across the Atlantic Ocean to the West Indies, the geographical region that is often thought of as the origin of sugar as it is known today.

Sugar was once deemed to be an exclusive product, originally consumed only by the wealthy, but it is now recognised as integral part of a staple diet world-wide.

Sugar originates from two distinctly different plants, Cane and Beet. The cane plant is a grass and is grown in tropical climates mainly in the Southern hemisphere, whereas the Beet plant is a tuber and is grown in cooler climates almost exclusively in the Northern hemisphere. White sugar can be produced from both Cane and Beet - the only product difference is in its final appearance. White sugar from Beet tends to be produced in slightly smaller and more uniform crystals than that from Cane. There is no difference in taste between the two.

There are four stages in the production of white sugar from cane: juice extraction, purification, crystallisation to raw sugar and then refining. Cane by-products are bagasse, molasses and filter presse. White Sugar from Beet has only three stages as no raw sugar is produced. Beet by-products are beet pulp and beet molasses.

The quality of white sugar is measured on the ICUMSA scale (the International Commission of Uniform Methods of Sugar Analysis). This scale measures the purity of the sugar according to the reflection of light through the sugar crystals, with zero being the purest possible

In 2002, some 148 million tonnes of sugar (raw value) was produced worldwide with cane sugar accounting for some 110 million tonnes and beet 38 million tonnes. This figure is variable and will depend on political and climatic changes, disease and weather conditions. For example, world sugar production was 118 million tonnes in 1995 and 135 million tonnes in 1999.

The biggest producing countries of sugar (cane and beet) are Brazil, India, EU, China, USA, Thailand, Australia, Mexico and South Africa. Of these, the main producing countries of white sugar from beet are the European Union, USA, Turkey, Poland, Ukraine and Russia.

In 2002 annual world consumption of sugar was 141 million tonnes. Raw and white sugar consumption continues to increase year on year, in line in particular with the growth rate of developing countries. The world's largest consumers of sugar are India, EU, China, Brazil, USA, Russia, Mexico and Indonesia.

World trade in raw sugar is typically around 22 million tonnes and white sugar around 16 million tonnes. The largest exporters of white sugar are the EU and Brazil, followed by India, Thailand and Turkey. The largest importers are the Gulf states, the Middle East, North Africa, Nigeria and Indonesia.

On the international market there are various qualities of white sugar. Nevertheless, Euronext.liffe's White Sugar Futures Contract, launched in July 1983, has become the benchmark against which white sugar is traded.The basis of the contract is 45 ICUMSA white sugar, delivered Free on Board (FOB) in designated ports across the world.

The White Sugar Options contract was launched in September 1989.

In 2002, Euronext.liffe's White Sugar Futures Contract traded over 1 million lots. This represents over 50 million tonnes of white sugar, over 3 times the volumes of white sugar traded on the world market.

White Sugar futures and options have been traded electronically on LIFFE CONNECT® since 27 November 2000.

Euronext.liffe's White Sugar contract is designed to meet the hedging requirements of the international sugar industry whilst also allowing for speculative investment in this historically price-volatile commodity.

The contract is relied upon as the global benchmark for the pricing of physical white sugar, and is actively used by the international sugar trade as well as by sugar millers, refiners and manufacturers who wish to actively manage their exposure to adverse price movements.

In recent years, the contract has also enjoyed increasing involvement by managed futures funds and both institutional and short-term investors.

For further information please contact sugar@liffe.com