Prospects for reduced imports in the world's second-largest generator prompted sugar futures to lose value on Thursday, according to Bloomberg.
The cabinet of India granted approval for a subsidy of the equivalent of $53.38 in rupees per metric ton for this month and March, an unnamed official told reporters in the capital of the subcontinent on Wednesday. That policy then will fall under review in April. Refinery owner Shree Renuka is set to enhance acquisitions of raw sugar as part of a drive to turn it into the refined version of the sweetener, according to company president Ravi Gupta.
"The measures are likely to result in more sugar being placed on the market," states a report authored by analyst Carsten Fritsch with Commerzbank AG in Frankfurt, according to Bloomberg. "The additional supply from India is likely to preclude any recovery of the world market price to beyond the 16 cents a pound mark."
At 9:41 a.m. on Thursday, sugar futures dropped 0.56 percent, a 0.0009-cent slip to 0.1602 cents per pound.
Reuters reports global agricultural trading house Bunge Ltd. said the fourth quarter of last year was profitable and it is taking a close look at the Brazilian sugar business.
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