Tips and Techniques for Trading Sugar in Indian Markets

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The production of Sugar in India has been taking place from the fourth century. The initial sugar industries were set up in the country in the year 1930 and were established in Uttar Pradesh and Bihar. Till some time, the sugar industries were only confined to places like Uttar Pradesh and Bihar but later it even spread to the southern part of the country. The sugar plant was later on also cultivated in the Western and the Northern regions of the country, thus making India one of the world’s larger sugar producers. India now stands second, next to Brazil.

Cultivation of Sugar:

Sugar is usually cultivated from Sugar cane and beet root. There are also other kinds of plants which do yield sugar but the major cultivation is sugar cane and beet root. The sugar which is refined and extracted from these two also has a lot of difference like the sweetness and also the color.


The Sugar cane plant looks similar to that of a bamboo plant with long leaves. This is usually grown in regions which have tropical and semi tropical climates.
Sugar beets are tubular plants. The root is white in color and is 12 inches long. Each root is known to weigh about 2 pounds.

Sugar is produced all over the World in countries like India, Pakistan, Sri Lanka, China, Cuba, Ukraine, Thailand, Bangladesh, Brazil to name a few. Out of the sugar produced from all over the world, 20% of it is sold in a free market. This is also referred to as World Sugar. The trades which take place in the World Sugar are supervised by the International Sugar Organization (ISO).

Import of Sugar:

India being the second largest producers of sugar, exports sugar to many countries like Japan, United Arab Emirates, United States of America, and United Kingdom are some of the major exporters.

Trading of Sugar


Sugar is usually traded in futures and has a delivery period in the months of March, May, July and October. There is also an option which expires in month of January and is based on the March futures. The trading of sugar is very closely monitored by the exchange and is traded according to the guide lines based by the CFTC.

There are also some factors which affect the sugar markets. They are the trading prices of sugar, the refinery activity, the consumer income, the sale percentage in candy and confectionary items, the change in eating habits and also the usage of sugar in new products.

Sugar is also traded in international markets. It is also a known factor that the international sugar trade has the accurate information related to sugar trading. There are many numbers of graphs, tables and analysis conducted by trading experts in the international market.

Consumption of Sugar


It is estimated that in the year 2007-08 the estimation of sugar was about 158.2MT and there was a rise in consumption when compared to the previous year. It is also expected that the there will also be an increase in usage of sugar in global markets like the United States and United Kingdom as well.