Sugar outlook turn sweeter on prospects of higher prices due to less rain

Sugar is the most highly controlled commodity in the Consumer Food Price Index (CFPI) basket

News reports that deficient rainfall leading to shortfalls in sugarcane production as the crushing season gets underway caused some concerns. This coincided with a sharp rise in sugar prices and rumours that the government would be looking at policy measures to prevent hoarding and prevent price-gouging, etc., by using the release mechanism, export controls, and so on. There could also be impacts on the ethanol and ethanol-blending industries.  

Apart from financial implications, sugar is of political importance. It’s a basic commodity which generates a lot of employment in agrarian districts in several states including Uttar Pradesh, Tamil Nadu, Karnataka and