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- The charts above depict several interesting aspects of
international sugar production, supply, and distribution
(PS&D). The graphs represent the situation as of
Oct/Sept 1998/99 through 2001/02. The EU is a predominant
influence in each aspect of the PS&D due to the
complete structure of its Common Agriculture Policy for
sugar and the sizable funding the program receives. Both
Brazil and the EU are historic producers and exporters,
whereas India is a relative newcomer to the ranks of
leading producers. Indian production began to ratchet up
about 16 years ago. For the first eight years most of its
production was consumed domestically, but in the last
eight- years, average production increased by 5.5 million
tons, or by 45 percent, over its previous eight year
average. Consequently, stocks began a dramatic buildup.
In the last two years Indian exports began to be
significant, reaching over one million tons. Although the
United States is a leading sugar producer, by virtue of
the price support loan program and the tariff rate quota
(TRQ), it is a net importer. Russia is the predominant
importer of sugar; however, the recent introduction of a
TRQ is an attempt to stimulate domestic production and
reduce its dependency on imports.
