SYDNEY: The policies of Pakistan and India have contributed to a global glut in the world’s sugar market, Australia’s Minister for Trade Simon Birmingham told Reuters.
“It is clear that export subsidies introduced recently by the Indian and Pakistan governments have contributed to a growing glut on global markets,” Birmingham said in an emailed statement to Reuters.
“Canberra has expressed its concerns to the Indian and Pakistani governments at the highest levels in the clearest possible terms.”
Raw sugar futures in New York slumped to a 10-year low of 9.91 cents on Aug. 22 as India and Pakistan both moved ahead with price subsidies to boost local production. India, which is expected to surpass Brazil and become the world’s largest sugar exporter this year, in May approved a subsidy of 55 Indian rupees ($0.7623) per tonne of cane sold.
Pakistan, whose sugar production has increased in recent years, in January quadrupled the volume of sugar eligible for export subsidies to 2 million tonnes to reduce excessive domestic supplies.
(This news/article originally appeared in DAWN on September 14th, 2018)