U.S. sugar price hits by India's ahead export subsidy

Indian government cabinet is likely to take decision on implementing a new export subsidy policy, and thereby, the volume of export will increase. According to the new subside policy, the sugar cane producers will receive a direct subsidy per kilogram shipped.

Markets expect the sugar cane processing in Brazil to increase significantly in compare to the last year's same period, this in turn put pressure on price level to come down. 

Due to the above two factors, the raw sugar price in New York dropped by 2.6% and stood at 14.8 US cents per pound yesterday, notes Commerzbank.