Indian refiners are set to divert 350,000 tons of sugar originally destined for offshore markets into the domestic market. This move comes after authorities cleared the action to ease a domestic supply crunch. Processors could release the stockpiles to local buyers within a week.

This diversion is significant as India is the world's second-biggest sugar producer, and the stockpiles would be enough to meet total demand in the world's most populous country for almost five days. The action aims to tame prices that recently surged to a record high.