Brazil cane manufacturers blasts Pakistan, India sugar export policies
Brasilia (Reuters) : On Thursday, Brazil’s sugarcane industry took aspire at policies undertaken by Pakistan and India to guard local producers and boost sugar exports, quarrelling they could further depress global prices.
Pakistan’s stature as a sugar producer has been rising in recent years, in January quadrupled the volume of sugar eligible for export subsidies to 2 million tons in a bid to decrease extreme domestic supplies.
The director for cane industry group Unica, said the organization was assessing whether those practices obey with World Trade Organization (WTO) rules. “We’ve made our concerns known to the Brazilian government.”
Export subsidies could force Pakistani farmers to rotate from rice to sugar, enduringly boosting global supply and pushing down prices, he said.
That was the case with Thailand, which rose to be converted into the world’s second-largest sugar exporter thanks to price controls.
In January, the Thai government eliminated domestic control of sugar prices and administration of sales as part of a regulatory overhaul to settle a Brazilian WTO challenge.
Pakistan is expected to produce around 6.5 million tonnes of sugar in the 2017-18 season ending on Sept. 30, according to the U.S. Department of Agriculture.
In comparison, output at the world’s second-largest producer India is likely to reach a record 29.5 million tonnes, with local prices already falling by more than 17 percent over the last six months.