Several countries subsidize sugar.[1] Globally in 2018, around 185 million tons of sugar was produced, led by India with 35.9 million tons, followed by Brazil and Thailand.[2] There are more than 123 sugar-producing countries, but only 30% of the produce is traded on the international market.
Market
Sugar subsidies have driven market costs for sugar well below the cost of production. As of 2019, 3/4 of world sugar production is never traded on the open market. Brazil controls half the global market, paying the most ($2.5 billion per year) in subsidies to its sugar industry.[3]
The US sugar system is complex, using price supports, domestic marketing allotments, and tariff-rate quotas.[4] It directly supports sugar processors rather than farmers growing sugar crops.[4][3] The US government also uses tariffs to keep the US domestic price of sugar 64% to 92% higher than the world market price, costing American consumers $3.7 billion per year.[4] A 2018 policy proposal to eliminate sugar tariffs, called "Zero-for-Zero", is currently (March 2018) before the US Congress.[3][5] Previous reform attempts have failed.[6]
The European Union (EU) is a leading sugar exporter. The Common Agricultural Policy of the EU used to set maximum quotas for production and exports, and a subsidized sugar sales with an EU-guaranteed minimum price.[7][8] Large import tariffs were also used to protect the market.[7] In 2004, the EU was spending €3.30 in subsidies to export €1 worth of sugar, and some sugar processors, like British Sugar, had a 25% profit margin.[9]
A 2004 Oxfam report called EU sugar subsidies "dumping" and said they harm the world's poor.[9]
A WTO ruling against the EU quota and subsidy system in 2005-2006[10] forced the EU to cut its minimum price and quotas, and stop doing intervention buying.[7] The EU abolished some quotas in 2015,[11][12] but minimum prices remain.[11][13][14] Tariffs also persist for most countries.[14] In 2009, the EU granted Least Developed Countries (LDCs) zero-tariff access to the EU market[7] as part of the Everything but Arms initiative.[8]
As of 2018, India, Thailand, and Mexico also subsidize sugar.[3]
Global players
The top 10 sugar-producing companies based on production in 2010:[15]
The global sugar industry has a low market share concentration. The top four sugar producers account for less than 20.0% of the market.[16]
The sugar industry engages in sugar marketing and lobbying, minimizing the adverse health effects of sugar—obesity and tooth decay—and influencing medical research and public health recommendations.[17][18][19][20]
^"Resolution In US House Against Subsidies On Sugar By Countries Including India". NDTV.com. Retrieved 2023-11-25.
^"Sugar: World Markets and Trade" (PDF). Foreign Agricultural Service, US Department of Agriculture. 20 November 2018. Retrieved 24 March 2019.
^ a b c dPhillips, Judson (16 March 2018). "Sugar, steel subsidies are anything but sweet". The Washington Times. Retrieved 2021-05-06.
^ a b c"Sugar and sweeteners: Policy". US Department of Agriculture. 20 August 2019. Retrieved 22 November 2019.
^Romano, Robert (2017-01-17). "Yoho Zero for Zero sugar policy is a trade win-win for everyone". Congressman Ted Yoho. Archived from the original on 2017-01-19. Retrieved 2021-05-06.
^Edwards, Chris (2007-06-20). "Why Congress Should Repeal Sugar Subsidy". Cato Institute. Retrieved 2021-05-06.
^ a b c d"Q&A: Sugar subsidies". Business. BBC News. 2005-09-19. Retrieved 2021-05-06.
^ a b"Food, Farming, Fisheries" (PDF). European Commission. October 2016. Archived from the original (PDF) on 2017-01-25. Retrieved 2021-05-06.
^ a b"Dumping on the world - How EU sugar policies hurt poor countries" (PDF). Oxfam. March 2004. Archived from the original (PDF) on 2018-05-07. Retrieved 2018-08-19.
^"Brazil Claims Victory After WTO Ruling on EU Sugar Subsidies". ictsd.org. 6 August 2004. Archived from the original on 2018-08-20. Retrieved 2018-08-19.
^ a b"Sugar | European Commission". Ec.europa.eu. Retrieved 2021-05-06.
^Burrell, Alison; Himics, Mihaly; Van Doorslaer, Benjamin; Ciaian, Pavel; Shrestha, Shailesh (2014). EU sugar policy: A sweet transition after 2015?. Publications Office of the European Union. doi:10.2791/68116. ISBN 978-92-79-35567-7. ISSN 1831-9424.
^Viljoen, Willemien (8 May 2014). "The end of the EU sugar quota and the implication for African producers". tralac.org. Retrieved 2021-05-06.
^ a bRoberts, Dan (27 March 2017). "Sweet Brexit: what sugar tells us about Britain's future outside the EU". The Guardian. Retrieved 2021-05-06.
^Chanjaroen, Chanyaporn (November 4, 2011). "Suedzucker Leads the Top 10 Sugar-Producing Companies". Bloomberg. Retrieved 2021-05-06.
^"Global Sugar Manufacturing: Market Research Report". IBISWorld. 31 March 2021. Retrieved 2021-05-06.[permanent dead link]
^Sifferlin, Alexandra (10 October 2016). "Soda Companies Fund 96 Health Groups In the U.S." Time. Retrieved 2018-03-24.
^Mozaffarian, Dariush (2 May 2017). "Conflict of Interest and the Role of the Food Industry in Nutrition Research". JAMA. 317 (17): 1755–1756. doi:10.1001/jama.2017.3456. ISSN 0098-7484. PMID 28464165.
^Schillinger, Dean; Tran, Jessica; Mangurian, Christina; Kearns, Cristin (20 December 2016). "Do Sugar-Sweetened Beverages Cause Obesity and Diabetes? Industry and the Manufacture of Scientific Controversy" (PDF). Annals of Internal Medicine. 165 (12): 895–897. doi:10.7326/L16-0534. ISSN 0003-4819. PMC 7883900. PMID 27802504. Retrieved 2018-03-21.(original url, paywalled: Author's conflict of interest disclosure forms)
^O’Connor, Anahad (31 October 2016). "Studies Linked to Soda Industry Mask Health Risks". The New York Times. ISSN 0362-4331. Retrieved 2018-03-23.
Further reading
Matthew Parker (2012). The sugar barons. Windmill Books. ISBN 978-0099558453.
Mosen Asadi (2006). Beet-Sugar Handbook. John Wiley & Sons. ISBN 978-0471763475.