There is an acute shortfall in sugar production in the two major sugar producing countries, namely Brazil and India. While Brazil is seeing a 5% to 8% shortfall in production due to scanty rainfall, India is facing a sharper decline of over 15% due to monsoon failure.
This has resulted in Sugar prices reaching a three decade high price few weeks back, and experts are expecting the prices to firm up further in the coming weeks due to hoarding and genuine demand pileup.