Money

Understanding the Budget (MONEY): inference (or assumption) based analysis.

The sugar industry subsumes the production, processing and marketing of sugars (mostly saccharose
and fructose). Globally, most sugar is extracted from sugar cane (80% predominantly in the tropics)
and sugar beet ( 20%, mostly in temperate climate, like in the U.S. or Europe).
Sugar is used for soft drinks, sweetened beverages, convenience foods, fast food, candy,
confectionery, baked products, and other sweetened foods. Sugarcane is used in the distillation of
rum.
Sugar subsidies have driven market costs for sugar well below the cost of production. As of 2018, 3/4
of world sugar production was not traded on the open market. The global market for sugar and
sweeteners was some $77.5 billion in 2012, with sugar comprising an almost 85% share, growing at a
compound annual growth rate of 4.6%.
Globally in 2018, around 185 million tons of sugar was produced, led by India with 35.9 million tons,
followed by Brazil and Thailand. There are more than 123 sugar-producing countries, but only 30% of
the produce is traded on the international market.
Sugar subsidies have driven market costs for sugar well below the cost of production. As of 2018, 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.
The US sugar system is complex, using price supports, domestic marketing allotments, and tariff-rate
quotas. It directly supports sugar processors rather than farmers growing sugar crops. 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. A 2018 policy proposal to
eliminate sugar tariffs, called "Zero-for-Zero", is currently (March 2018) before the US Congress.
Previous reform attempts have failed.
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. 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.