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India’s cabinet committee on economic affairs approved a subsidy today for exporting tonnes of sugar. With the global market suffering from large inventories of sugar, India has created a situation where even more supplies of sugar may hit the global markets from the worlds second largest producer. Brazil, the largest producer of sugar in the world, criticized India’s sugar export subsidies sighting enhanced distortion of the global sugar trade. Sugar prices have been on a tear beginning the year 2014 up 6%. Forecasts of dry weather in Brazil have added to concerns over potential reductions in sugar supplies coming from the 2014 sugar harvest.

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