Sugar made from sugarcane and/or sugar beet is widely used as sweetener around the world. Sugar is used both for domestic consumption as well for industrial purposes.

India the largest consumer of sugar in the world experienced a severe shortage during the first half of the fiscal year 2009-2010. This shortage drove the import of large quantities of sugar from other countries in particular Brazil, the largest producer and exporter of sugar. In the fiscal year 2008-2009, India had excess production of sugar and exported large quantities to neighbouring countries in Africa and Asia.