Sugar prices expected to stay in check in 2008-09; sugar ethanol price discount vs oil to increase

International sugar prices are expected to remain in check during the 2008-09 season, according to a report in The Hindu. The report projects that large surpluses in Brazil and India, and weak demand from Russia, will ensure that both sugar and sugar ethanol prices remain under control. However, the report warns that smaller harvests expected in India and China may result in a winnowing of global surplus stocks and put price increases into play later in the year.

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