With sugar fabrication approximated to exceed domestic demand, the administration today permitted sugar exports to the tune of 5 lakh tonnes.

A minister emerging out of the meeting of Empowered Group of Ministers (EgoM) led by Finance Minister Pranab Mukherjee said, "Five lakh tonnes of sugar exports have been allowed."

Following the unexpected growth in ex-factory rates, the retail prices of sugar in retail will increase by Rs 3 per kilogram.

During the last week, sugar millers decided to lift costs of the sweetener by 4-6%in order to cut down losses after prices drop below production cost.

The Union food ministry has decided to provide subsidized loans to sugarcane farmers on which the farmers have to pay an interest of just 4% instead of 7%. The Centre has taken the initiative to facilitate sugarcane farmers so that they can purchase quality seeds, fertilizers and pesticides. 

According to the International Sugar Organization, sugar supply is likely to go down this year as freek weather hits the globe.

Due to the shortage of sugar, its price would remain high.

Raw sugar traded in the New York futures market has gone up 86%. Due to bad weather in India, it is facing its worst drought in 83-years.

On the other hand, Brazil, world’s biggest sugar producer, also faces harvesting delay and crop damage.