Sugar price falls on news of ex­ports

Port Douglas & Mossman Gazette - - NEWS -

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.

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