The policies of India and Pakistan 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.
“Australia has expressed its concerns to the Indian and Pakistani governments at the highest levels in the clearest possible terms,” he said.
“Raw sugar futures in New York slumped to a 10-year low of 9.91 cents on August 22 as India and Pakistan both imposed price subsidies to boost local production,” the minister noted.