New Delhi — In a world where sugar has attracted increasing scrutiny for its effect on health and obesity, there are moves afoot in the biggest-consuming country to persuade people to eat more of the sweetener.

Mills in India are eyeing increased consumption as a way to cut the nation’s chronic oversupply, which stems partly from the favourable incentives provided to growers in politically powerful rural areas. Due to high production costs the country finds it hard to sell sugar on the global market without subsidies...

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