Australian sugar industry reacts on India allowing sugar exports of 1 million tonnes
The Australian Sugar Milling Council expressed concerns over India’s decision to export 1 million tonnes of sugar, warning of potential global market disruptions and lower sugar prices. The move is seen as a threat to the Australian sugar industry, which exports 80% of its production. In contrast, India’s Sugar & Bio-Energy Manufacturers Association welcomed the decision, emphasizing its positive impact on liquidity and support for farmers.
After India allowed 1 million tonnes (MT) of sugar, the Australian sugar industry reacted, citing its effect on their industry.
Australian Sugar Milling Council (ASMC) said that the Indian Government’s announcement to export up to one-million tonnes of sugar has raised alarms about potential market disruptions causing a decline in sugar prices globally.
“The Australian sugar industry exports more than 80% of its production, and these exports are worth well over $2 billion. This decision threatens the livelihoods of Australian sugar manufacturers, growers, and regional communities that rely on a stable and profitable sugar industry” said Ash Salardini, CEO of the ASMC.
“Any sudden resumption of subsidised sugar exports risks destabilising global markets. This undermines efforts to ensure fair trading conditions and places additional pressure on the Australian sugar industry”, stated Salardini in a press release.
“We are a trade exposed economy, with a quarter of our GDP generated through exports. Australia needs to be front and centre in defending international trade rules, as decisions like this have grave implications for the broader Australian economy, ” he further added.
The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has welcomed the move by government.
“This progressive step addresses surplus sugar stocks and demonstrates the government’s commitment to supporting the sugar industry and the rural economy. This timely decision will significantly aid sugar mills by enhancing financial liquidity, ensuring timely payments to sugarcane farmers, and contributing to the overall strength of the agricultural economy. It is a testament to the government’s focus on a sustainable and thriving sugar sector. The approval is in line with ISMA’s long standing demand for allowing exports to enhance liquidity, ensure timely payment to farmers and stabilise the domestic sugar economy, “ ISMA stated.
The government on Monday allowed the exports of 1 MT of sugar in the ongoing 2024-25 season, after taking into consideration domestic availability. Exports of the sweetener had been banned since the last season.
“This ensures price stability, supports 5 crore farmers families, 5 lakh sugar mills workers and strengthens the sector,” food minister Pralhad Joshi said in a social media post in X on allowing sugar exports.
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Source : Chinimandi
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