Sugar prices to rise in 3-4 months: CMIE

Opening up of sugar exports to Pakistan will increase pressure on domestic price levels. "The firm trend in domestic sugar prices will continue for at least the next three to four months," the Centre for Monitoring Indian Economy said in its latest August review issue.

Sugar production is expected to rise to 158 lakh tonne during October-September 2005-06, owing to an increase in the acreage under sugarcane.

However, the improvement in sugar production will not be sufficient to curb the firm trend in prices. Moreover, the fear of India exporting the sweetner to its neighbouring countries, Pakistan and China is also likely to exercise upward pressure on domestic sugar prices.

The Pakistan government had banned imports of sugar from India in 2001, saying that they did not meet the quality standards.