India imports 1 million tons as sugar prices surge 40%
Business
Sugar just got a lot more expensive in India: prices shot up nearly 40% in two months, thanks to festival and wedding season demand.
To keep things under control, the government is importing 1 million tons of sugar for the first time in nearly a decade.
They've also lowered this year's production estimate from 34.3 to 30.6 million tons.
SEZ refineries to sell duty-free sugar
The price spike is mostly because less rain (thanks, El Nino) meant smaller sugarcane harvests, right when everyone wanted sweets for celebrations.
Early export approvals and using some sugarcane for ethanol made supplies even tighter.
To help out, refineries in special economic zones will soon be allowed to sell duty-free sugar within India starting September 1.