The average cost of sugar in 2011 is 38 cents per pound. Sugar is traded in New York at the Intercontinental Exchange. Analysts say the prices are likely to move up as sugar consumption is expected to grow by around 2% during 2011, mainly owing to rising incomes and lower prices making sugar more affordable. Brazil is the world’s largest producer of sugar, where by 2011-2012 the area planted to sugar cane is projected to increase by 50%. This is expected to result in an increased production of 19%, amounting to a little over 40 million tons. The strong growth in US ethanol demand is unlikely to have any effect on sugar prices during 2011.