OREANDA-NEWS. February 20, 2015. Raw sugar futures slid around 3 percent on Thursday as India approved export subsidies for the commodity, while arabica coffee hit a one-year low on forecasts for rainfall in top grower Brazil.

Cocoa steadied in light, technically driven dealings.

ICE raw sugar futures fell as India gave the green light to incentives for exports of 1.4 million tonnes of raw sugar, potentially adding substantial supplies to the world market.

A sharp slide in oil prices also weighed on sugar.

Cheap oil erodes the competitiveness of sugarcane-based ethanol biofuel.

Dealers said the return of Brazilian producers to the market after Carnival boosted producer selling pressure.

"They (India) have got to sell. They have substantial stocks and they have debts to pay. I think that was the main reason (for the decline in prices) and also the real is a bit weaker today," one London-based sugar broker said.

A weak real boosts the local-currency returns to Brazilian millers from dollar-denominated sugar sales.

ICE March raw sugar futures traded down 0.42 cent, or 2.8 percent, at 14.67 cents a lb at 1541 GMT.

May white sugar was down \\$9.40, or 2.4 percent, at \\$385.60 per tonne.

Arabica coffee futures on ICE hit a fresh one-year low.

"Forecasts of rainfall in Brazil continue to be the main factor weighing on prices," another London-based broker said.

ICE May arabica coffee futures traded down 3.35 cents, or 2.1 percent, at \\$1.5360 per lb, having touched a one-year low of \\$1.5350.

May robusta coffee futures traded down \\$22, or 1.1 percent, at \\$1,987 per tonne.

Cocoa edged higher, supported by low purchases in the world's second-biggest grower, Ghana.

ICE May New York cocoa futures traded up \\$8, or 0.3 percent, at \\$2,981 per tonne, having touched a five-week high of \\$2,982.

London May cocoa was flat at 2,003 pounds per tonne.