India Sugar

Sugar has a combined weight of 1.13 per cent in the consumer price index (CPI). This is lower than rice, wheat and refined edible oils

This could add to food inflation and discourage New Delhi from allowing sugar exports, supporting global prices which are near their highest in more than a decade

The uneven monsoon in 2023 means that industry is already beginning to factor in a drop in production in Maharashtra, Karnataka and Gujarat

The Centre slashed subsidy on sugar exports from Rs 6,000 per tonne to Rs 4,000 per tonne with immediate effect in view of firm global prices

The core issue is that China, which recovered faster from Covid, revved up export economy and is paying premiums for containers, making it more profitable to send them back empty than to refill them

The price of the contract had breached the 4,000-rupee level to reach a record high in February