Industry Stunned as India Approves Mega Package to Support Sugar Exports

Published:

NOTE: This article is older than 12 months

The Indian government today approved a contentious A$1.3 billion export subsidy of A$216/tonne to help its sugar industry export more than 6 million tonnes over the next year.

“We are stunned by this development, just days after the WTO formally established Dispute Panels to investigate the legality of India’s sugar subsidies,” said David Pietsch, CEO of the Australian Sugar Milling Council.

“India’s government has approved a massive market distortion.  The amount of sugar involved dwarfs Australia’s total annual raw sugar exports of 3.6 million tonnes,” he added.

CANEGROWERS Chairman Paul Schembri said the adverse sugar price effects of India’s latest move will be felt around the world. 

“This decision by India underlines the vital importance of the WTO process the Australian Government is undertaking with full industry support. We urge those involved to take every opportunity and move as fast as they can to expedite this process.

“The low value of sugar on the world market is weighing heavily on the mood of the industry and particularly on growers and their future plans,” said Mr Schembri.

“Australia is one of the most efficient and lowest-cost producers of raw sugar in the world, but we are struggling to survive this current extended period of below-cost returns,” added Mr Pietsch

“Rather than this attempt to offload raw sugar on an already over-supplied world market, we urge the Indian government to consider alternative solutions, including long-term storage within country and a commitment to reform of its domestic subsidy measures that have contributed to the global sugar glut.”

“This would ease the pressure on both India’s domestic price and the world sugar price. It would also be seen as a constructive response to the legitimate concerns raised in the WTO by the Australian, Brazilian and Guatemalan governments.”

“The Indian Government’s flagrant actions will be subject to an exhaustive and lengthy WTO Panel dispute resolution process,” concluded Mr Pietsch.

 
Business Business & Economy Community Environment
Social:   

Privately Submitted Article or Event :
See Above Article or Event for Address, Sunshine Coast Wide
Privately Submitted Article or Event
Showing 10+ recent articles for this business
How Queensland farmers can prosper in a net-zero emissions world 22 September 2020 | Queensland primary producers looking to strengthen their businesses and communities are encouraged to apply for a new Queensland Resilient Regions Fellowship and masterclass, hosted by Farmers for Climate Action... More information...
Your Help Needed to Extend the Evictions Moratorium 22 September 2020 | As you are probably aware the Queensland Government recently announced their intent to end the evictions moratorium for COVID-19 affected residential renters on 29/9/2020. At the same time, the government have... More information...
Government Policy on JobSeeker and JobKeeper Unhealthy and Economically Counterproductive 21 September 2020 | "The Federal Government's plan to reduce JobSeeker and JobKeeper, its previous elimination of the temporary child care support measures, and its planned tax cuts will damage the lives of many and will have little... More information...
Fleetwood Challenge Cup equips next generation of built design professionals to solve Australia's housing affordability challenge 18 September 2020 | An Australian-first inter-University design competition saw Architecture, Engineering and Construction (AEC) students team up to face the challenge and deliver industry leading built environment design solutions... More information...
Future technologists battle it out at RoboRave challenge 18 September 2020 | RoboRAVE Australia 2020, will see over one hundred teams compete in a series of robotics challenges that test their skills in coding and mechatronics. This ground breaking event opens its doors to registered... More information...
AFPFMA calls on Government to adopt the term 'Police Veteran'' 21 September 2020 | The Australian Federal Police Former Members Association (AFPFMA) has called on the Federal Government to start using the term ‘police veteran’ when referring to former police. More information...
Telehealth expansion welcomed by rural health peak body 18 September 2020 | The National Rural Health Alliance, the peak body for rural health in Australia, welcomed the Australian Government's expansion of Medicare rebates for telehealth consultations until 31 March 2021. More information...
Accountants again under pressure to implement Jobkeeper 2.0 16 September 2020 | The release of the legislative rules for JobKeeper 2.0 yesterday highlights yet again the vital role accountants are playing during the COVID-19 emergency in helping Australians and businesses access the extended... More information...
Consultation Paper on the Pricing Framework for Australian Public Hospital Services 2021–22 released for public comment 09 September 2020 | The Independent Hospital Pricing Authority (IHPA) today released its Consultation Paper on the Pricing Framework for Australian Public Hospital Services 2021–22. More information...
Why it is cheaper to buy in southeast Queensland than to rent 09 September 2020 | Areas such as the Sunshine Coast and Gold Coast have enjoyed exceptional capital growth over the past 10 years with further positive projections in the medium to long term, especially as more and more people work... More information...


comments powered by Disqus

All articles submitted by third parties or written by My Sunshine Coast come under our Disclaimer / Terms of Service