India, Oct. 14 -- Sugar prices are rising again, up over 10% in the past six days, amid tight supplies ahead of Diwali, when demand for sugar typically rises as households and sweetmakers prepare for the festive season. Ex-mill rates in Uttar Pradesh rose to Rs.5,200 per quintal on October 12 from Rs.4,600 on October 6 (up 13%). The prices in Maharashtra rose to Rs.5,100 from Rs.4,350 over the same period (up 17%), according to local traders.

"There is not enough sugar in the country. Even the additional 300,000 tonnes, which was supposed to be exported but was made available for domestic consumption, has not helped. It has already been absorbed in September," said GK Sood, an agriculture expert and independent director.

Sood said restr...