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Sugar hangover

Overview

India is on track to overtake Brazil as the world’s top sugar producer this season. Unfortunately the crown for the 2007-08 harvest may be more of a fool’s cap than a real honour. Government missteps and price controls have played key roles in exacerbating the country’s worst ever sugar glut and weighing down global prices.

Further industry deregulation, especially of sugarcane pricing mechanisms, is vital to help local millers modernise and to eliminate the severe shocks brought...

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