India fires cannon in the sugar war

New sugar export subsidies announced by the Indian government on Wednesday are unsustainable and will only prolong the current cycle of low global sugar prices, Brazilian sugar industry group Unica said on Wednesday.

Unica's head Evandro Gussi said the move by India's government hurt free competition in the global sugar market and was not in accordance with the rules set by the World Trade Organization (WTO).

Brazil, Australia and Guatemala have questioned the subsidies, Press Trust of India reports.