India on notice in cane war

QUEENSLAND backbenchers whose seats could be at risk from sugar farmers angry over a trade war have urged the Government to take a tougher stance against India, which is driving down global prices.

MPs including Keith Pitt and Ken O’Dowd have called on the Federal Government to demand India reverse massive subsidies that breach trade rules and could push Queensland sugar farmers out of business.

“Sugar growers are caught in the perfect storm at the moment with India dumping millions of dollars’ worth of subsidised free sugar on to the world market, sending the price into free fall at the same time that drought- related water issues and massive energy costs are causing local sugar production costs to skyrocket,” Mr Pitt said.

Trade Minister Simon Birmingham has threatened to launch a World Trade Organisation dispute against India but the MPs warned any delays could end up killing off parts of the sugar industry.

“India is in breach of WTO rules. The WTO has to act and act now, not in three years’ time because in three years, our sugar industry won’t exist if this can’t be resolved now,” Mr O’Dowd said.

The pair also called for the Queensland Government to slash electricity prices by a third for food and fibre producers.

“If the state won’t act then Minister for Energy Angus Taylor should implement the ACCC recommendation on tariffs and force Queensland to do the right thing,” Mr Pitt said.