India’s consumers have the world’s biggest sweet tooth, and are struggling with rising prices for sugar and a dramatic drop in domestic production. For 60 million Indians, sugary milky tea is the main source of carbohydrates. Poor rains in June in India and excess rains in Brazil contributed to the world sugar shortfall, estimated at nine million tonnes, in 2009. It is the second year running that demand outstrips supply. Domestic production in India dropped 43 percent to 15 million tonnes, reports Bloomberg.

The price of refined, white sugar increased four percent in trading 10 September on speculation that India, Indonesia and Pakistan were to import more sugar. The world price of sugar almost doubled in 2009. BBC, Bloomberg, Economic Times, India