Sugar stocks rally on report India may keep export subsidies
Updated : July 16, 2019 10:22 AM IST
All sugar stocks’ rallied on Tuesday after the Indian government decided to keep sugar export subsidies despite complaints from rivals to the World Trade Organisation (WTO), reported Reuters.
“The export subsidies are designed to increase shipments from the world's second-biggest sugar producer and reduce their brimming inventories. But that could pressure global prices that have only eked out a 2.1 percent gain this year after plunging more than 20 percent in 2018”, said Reuters report.
The report further said that India's exports surged to 3.3 million tonnes from 620,000 tonnes a year earlier. That prompted rivals to complain at the WTO, alleging the incentives violate trade rules.