Sugar prices in China, the world's second-largest consumer of the sweetener, increased the most in more than four months on speculation the government may raise the floor price in the next two stockpile auctions traders said.

White, or refined, sugar for March 2007 delivery, the most actively traded contract on the Zhengzhou Commodity Exchange, rose 3.2 percent, its biggest gain since April 19. The contract settled at 3,351 yuan (US$421.30) a metric ton on Sep 1.