India to provide subsidy to export 6mn tonne sugar in 2019/20

MUMBAI: India's cabinet has approved incentives to encourage cash-strapped mills to export up to 6 million tonnes of sugar in the 2019/20 marketing season starting from Oct. 1.  The export subsidies are designed to increase shipments from the world's biggest sugar producer and reduce their brimming inventories. But that could pressure global prices which are trading near their lowest level in 11-months.

The government will provide a subsidy of 10,448 rupees ($146.14) per tonne for the exports, it said in a statement.

Reuters earlier reported that India will keep its sugar export subsidies despite complaints to the World Trade Organization (WTO) from rival producers Brazil and Australia.