India’s union Finance Minister Pranab Mukherjee said on Tuesday that the Indian government is aiming to curb the volatility in sugar prices by using several instruments including its trade policy.

"The government of India has been seeking to stabilise sugar prices by moderating the volatility during scarce and surplus domestic sugar seasons," Mukherjee said. He was speaking at an event to inaugurate the 41st council meeting of the International Sugar Organisation.

He also said that the government is using instruments like duty-free raw sugar under advance authorisation scheme or import of duty-free white or refined sugar through some of the government agencies and import of duty-free raw sugar under Open General License.

He also said that there is a need for improved technology to improve the quality of sugar and also enhance usages of sugarcane for energy generation. He added that the sugar production industry in the country is critical for rural development. About 50 million people are involved in sugarcane cultivation and harvesting in India and it supports employment in various ancillary activities.

India is the world's largest consumer and second largest producer of sugar.