This week India has dumped millions of tonnes of subsidised sugar on the world market. India’s actions will have a direct impact on local farmers and the Australian sugar industry.

KAP Member for Hinchinbrook, Nick Dametto- who’s electorate is home to a sugar industry worth more than $300 milion a year, said;

“This is a disgraceful decision by India at a time when our producers are already dealing with a poor world sugar price below the cost of production. It’s time the Federal Coalition Government joined with other affected countries of the Global Sugar Alliance and held India accountable before the World Trade Organisation. The government has the power to take some real action here and preliminary analysis done by Canegrowers indicates that India is in breach of WTO rules.”

He said India’s underhanded tactics were extremely unfair to Australian producers who operated in a deregulated industry that was completely at the mercy of the world market.

KAP leader and Federal Member for Kennedy, Bob Katter has also condemned the decision and cast doubt on the willingness of industrial countries like China or India to be transparent when it came to playing by the rules on free trade.

Bob has long fought against deregulation which was brought about by National Liberal governments. “Free” trade has now ravaged multiple agricultural industries in Australia including dairy, beef and sugar.

On deregulation of the sugar industry he said;

“Before deregulation, the sugar producer was receiving $473 a tonne and the price to the consumer was $1040 a tonne (104c per/kg). A mark-up of around 100 per cent. The “current price” to the producer is $317 per tonne and the price on the shelf is $1750 per tonne ($1.75 per/kg). That’s nearly a 600 per cent mark up.”

It is essential that both State and Federal governments begin to the see the serious implications that open borders and deregulation is having on the Australian agricultural industry before these industries disappear from Australia altogether.

Shane Paulger
KAP President