India dumping its extra sugar may drag down already low global prices

Even though world inventories are forecast to drop, the excess hoard is still big enough to satisfy annual consumption in India and the European Union, the top consumers

India is dumping its extra sugar on the world, threatening to further drag down prices that are already at the lowest in almost a year. 

India’s government is spending Rs 62.68 billion ($873 million) to subsidise exports in an effort to cut the nation’s record stockpiles. The move is drawing ire from rival growers in Brazil and Australia, who say the policy is depressing world prices and hurting their farmers. Meanwhile, hedge funds are betting declines for futures will continue.

The subsidies are just another blow to the market that’s already suffering from oversupply. A weaker currency in Brazil, the world’s top