While it is understandable that other producers should be angry enough to refer India to the WTO some sympathy should be given to the Indian government. hard place. There are probably around 200 million the sugar industry. It is impossible for the government to control production, especially as sugar remains one of the most political of commodities. Not only are there 30 million cane farmers but also over 600 sugar mills. From a government perspective there is only one thing worse than producing too much sugar and that is not producing enough. Famine is still a dreadful memory for many. In 1972 over 25 million people needed help when Maharashtra was hit by a huge drought.
incentives. Undoubtedly politics was the main driver but, longer term; if nothing had been done the whole to the extent that production could completely collapse. This could not be countenanced by the government.
resolution of the issue. Indeed they probably do not expect any change to the current incentives scheme. also perhaps hope that the Indian government may
own before bowing to any imposed disciplines by the WTO. Of course some would argue that the majority quotas, subsidies, incentives and soft loans and it home sugar industry with quotas and import and export controls. Some of these are allowed under the WTO but some stray very close to being disingenuous.
As mentioned above, for the Indian government not to support their farmers and mills could mean a incentives will encourage their farmers to continue to be continued and might even be improved. Chatter is that Indian sugar production will drop next season but There are plans to use cane to increase ethanol
Howard Jenkins
7 | ADMISI - The Ghost In The Machine | May/June 2019
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