COVID-19 has disrupted India's domestic sugar consumption owing to fewer social gatherings and smaller celebrations. Though sugar exports are higher following decline in production from other countries. While the industrial demand in India is expected to fall 8 percent this season, exports are 30 percent higher as compared to the same time last year.
The government also recently increased the minimum support price or the FRP that sugar mills pay to the sugarcane growers.
The sugar mills cumulatively owe a record Rs 17,000 crore to the sugarcane growers. CNBC-TV18's Manisha Gupta spoke to experts to discuss how this will impact sugar as a sector.