Amidst the speculations that the export of sugar from India will stop, the prices in the world market have gone up

- Production is likely to remain low due to lack of rainfall in the current year

MUMBAI: After restricting exports of essential agricultural products like wheat, rice and onion in one way or another, the Indian government is considering curbing sugar exports as well, pushing global sugar prices to a two-month high.

Expectations that the government will cut export supplies for the new sugar season starting from October have pushed up sugar prices in the world market. After Brazil, India is the second largest exporter and producer of sugar in the world.

Due to lack of rainfall in the current year's monsoon, the production of sugar is likely to be affected, not only because of the increasing consumption of sugar for the production of ethanol for mixing in petrol, the export of sugar is also likely to decrease. Until the Lok Sabha elections, the government may restrict the export of sugar. There are speculations in the market that the restrictions will be imposed. In the international market, the October delivery price of raw sugar is being quoted at 25.57 cents per bushel while refined white sugar is being quoted at $709.40 per tonne.