A method of producing and packaging of spun sugar is described. The process may include the steps of (a) obtaining liquefied sugar in a floss head, by heating sugar at a temperature of 126-140C; (b) instantly cooling the liquefied sugar to obtain sugar threads wherein the hygroscopicity of the sugar threads is kept low by carrying out both steps above under a controlled environment; (c) packaging of the Candy Floss/Spun Sugar in cups/containers of Candy Floss/Spun Sugar which are sealed with a specialized lid, wherein the ratio of the weight of Candy Floss/Spun Sugar (in grams) to the volume of the cup (in ml) is kept within control on the basis of an experimentally derived ratio; (d) re-packaging the cups of Candy Floss/Spun Sugar, in a secondary packaging material under a controlled environment which further helps in reducing moisture transmission inside primary packaging.