Due to approaching festive season in India, the Government has increased the cap of sugar stock that can be held by the traders. The Government has issued the order so as to avoid the shortage of sugar and inflation in sugar prices.

With increase in the output of sugarcane the country is planning to increase the export limit in October. The increase in the production of sugar has risen for the second year. The price of the raw sugar was recorded at a fall of
2.75%.

Food Minister of India KV Thomas revealed that the sugar production predicted for the sugar production year from October to September 2011-2012 amounting to 24.6 million tonnes.

According to Agriculture Minister Sharad Pawar, weather conditions this year were favoring the production of sugar.

In response to the query on the underestimation by the Food Ministry on the production limit of sugar, Mr. Pawar stated that, "Global prices will become unfavorable if there will be a delay. The government had to provide about Rs
1,500 crore to mills as export assistance a few years ago. We do not want that situation".

This year, the Government sent around 2.6 million tonnes sugar overseas along with 1.5 million tonnes as per the Open General Licenses (OGL).