Sugar 11 Short. The most active futures for raw sugar 11 in mid-March changed direction, entered a downward trend and continue bearish dynamics. Weak oil prices have a major impact on ethanol prices and thus sugar prices, and may force Brazilian sugar factories to divert more cane to sugar production rather than ethanol, which will logically increase its supply. In addition, higher sugar production in India, which is the world’s second largest exporter of sugar, is negative for sugar prices. The Indian Confectionery Association announced last week that India’s sugar production had risen by 20% year on year to 25.87 MMT as of October 15, 2020. The outlook for February 11 this year predicts that sugar production in India will increase by another 9% year-on-year to 29.9 MMT in the 2020/21 season.