Sugar Shortage Hits India, Pakistan

by Drea Knufken August 25, 2009, 10:09 am 50 Views

A massive shortage in sugar stocks in India and Pakistan has led to soaring prices and consumer unrest. The Indian government has introduced strict limits on companies that stockpile sugar to check rising prices.

Shortages led Pakistan’s government to nearly double sugar prices causing public outrage ahead of the fasting month of Ramadan, which has now begun.

The price of raw sugar worldwide has increased to its highest level since 1981, as supply concerns grow. Global sugar prices have been pushed up by growing demand in Brazil for sugar to be turned into ethanol for vehicle fuel, and a sharp fall in production in India, the world’s largest sugar consumer.

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