New measures to stabilize sugar prices are expected soon, as prices continue to fluctuate, said Liu Xiaonan, vice-minister of the Economic and Trade Department within the National Development and Reform Commission.

Speaking at the 2012 Zhengzhou Agricultural Products (sugar) Future Forum, Liu said: "If the sugar price is lower than its production cost, companies start to make losses, as do farmers. We should take measures to enhance confidence in the market," he said.

Sugar consumption in China has dropped, because of competition from sugar alternatives, falling prices overseas, and from illegal imports of sugar into the country, he said.

National stocks of sugar are also rising, forcing down the price.

"The rising supplies of raw and refined sugar in the marketplace, rising labor costs and poor infrastructure, have doubled the price in the past three to four years."