India’s stockpiles of sugar have surged as a result of over-production and are equivalent to a year’s worth of American demand. Export subsidies from the government won’t have helped, while a 12% improvement in prices from mid-May lows still leaves them 21% below the five year average. The drop in prices led to a 48% slump in export earnings in the first quarter on a year earlier. Yet, the problem may be competitiveness as Indian export volumes fell 27% vs. a 2% improvement for Brazil’s shippers.