Sugar price falls on news of exports
AN Indian government decision to help its sugar industry dump 5 million tonnes of subsidised sugar onto the world market is devastating for Australia’s sugarcane farmers according to Canegrowers.
Canegrowers said the Australian Government must stand up and take the issue to the World Trade Organisation.
“India is exporting its domestic problem of failed sugar policies which encouraged overproduction,” Canegrowers chairman Paul Schembri said.
“Australian growers must not be left to bear the costs of India’s breach of international trade rules.
“On the back of the news that India’s industry is getting the equivalent of a $850 million assistance package including help to export its subsidised sugar, the global price plunged below 10 US cents/pound.
“The price was already below our costs of production, so this further drop is another hit to Australian cane growers and their rural communities.”
In the past 10 months, the sugar price had already fallen to the equivalent of $156 per tonne as a surplus market anticipated Indian subsidised exports. With the Indian government confirming the exports, the market fell by a further $14 per tonne to be just on $300 per tonne.