Sugar prices are poised to go down further as India’s Food Minister approves an export subsidy of INR 4000 (U$65) per tonne. Some 1.4 mln tonnes of sugar is available for export. Final approval from the Indian Cabinet is awaited. This will invariably check the rally in sugar prices following the announcement by the Brazilian government of a large rise in gasoline taxes, thereby making ethanol more competitive resulting in increased diversion of cane for fuel rather than sugar production.