INDUSTRY SOUR OVER SUGAR EXPORTS
Indian sugar subsidies costing the Far North $212.5m a year
CANEGROWERS Cairns regional chairman Stephen Calcagno has hit out at India’s sugar export subsidies and its impact on the Far North. “With Cairns doing it tough because of the loss of tourism, it would be handy to have another sector that’s doing well,” he said.
INDIAN sugar export subsidies are costing Queensland cane growers and sugar millers almost $5 million a week in recent years – and the industry is looking to the World Trade Organisation (WTO) to fix it.
Canegrowers Cairns regional chairman Stephen Calcagno said India’s export of its oversupply had depressed global prices for sugar for the past four years.
“And that has been to the detriment of Australia,” he said.
“Especially right at this time, with Cairns doing it tough because of the loss of tourism, it would be handy to have another sector that’s doing well,” Mr Calcagno said.
Federal member for Leichhardt Warren Entsch said the price distortion of India’s government subsidies to its growers had a direct local impact.
“I think it is a bloody disgrace and I’m glad to see a number of countries including Australia challenging this as it has a major impact on our farmers,” Mr Entsch said.
“I’m glad to see it taken to an international forum, it is just wrong and common sense needs to prevail.
“Alternatively, we can retaliate on Indian produce coming to Australia.”
A commodity report commissioned by the Australian Sugar Milling Council (ASMC) found the industry
had incurred an estimated $1bn revenue hit between 2017-18 and 2020-21 – or almost $5m every week.
The report said India’s actions had cost $212.5m in the northern region including the mills of Tableland, Tully, South Johnstone and Mossman.
ASMC director David Rynne said Australia, Brazil
and Guatemala complained to the WTO in February 2019 and expected a report this year.
“Over the past four years, these subsidies have hurt Queensland growers, millers and sugar industry employees, their families and communities,” Mr Rynne said.
He said India’s sugar production of more than 33 million
tonnes exceeded its domestic sugar consumption of about 26 million tonnes and excessive subsidised production meant export subsidies were likely to be ongoing if it not reined in.
Canegrowers chair Paul Schembri said India’s subsidies on exported sugar were up to one-third of an Indian mill’s cost of production.