According to industry sources, domestic sugar prices have surged by 3 percent over the past 15 days, reaching their highest levels in six years.
Due to a lack of rainfall in sugarcane-producing areas, prices have increased just as the festive season approaches, during which sweet consumption is expected to significantly rise.
This development may contribute to food inflation and dissuade the government from permitting sugar exports, thereby maintaining support for global prices, which are currently close to their highest levels in over a decade.
On Tuesday, sugar prices reached INR 37,760 per metric tonne, marking their highest point since October 2017.
Considering the robust demand for sugar anticipated during the approaching festival season, the government allocated an extra quota of 200,000 metric tonnes for August, in addition to the 23.5 LMT already allocated for the month.