Foreign Sugar Supports Intensify Pressure on U.S. Growers

Foreign subsidies, tariffs, and market controls continue to shape global sugar competition facing U.S. growers.

LUBBOCK, Texas (RFD NEWS) — U.S. sugar growers face continued pressure from heavily managed foreign markets, according to a Texas Tech University review of global sugar subsidies and trade policies. The analysis found government intervention remains widespread across major producing, consuming, and exporting countries.

The report covers 29 countries representing 86.2 percent of global sugar production and 87 percent of exports. Researchers reviewed World Trade Organization tariff data, USDA trade and production figures, and Foreign Agricultural Service reports.

Import tariffs and quotas were the most common protections, while many countries also use price supports, input subsidies, export controls, and ethanol mandates. India’s average applied sugar tariff was 55.7 percent, Thailand’s 41 percent, China’s 28.7 percent, and Mexico’s 28.1 percent.

The report also cites WTO analysis showing India’s sugarcane market-price support reached $17.6 billion in 2021-22, equal to 99.1 percent of the crop’s production value. Researchers say China and India have provided some of the largest sugar-specific transfers in recent years.

The Texas Tech research was funded by the American Sugar Alliance, which represents U.S. sugar producers and processors.

Farm-Level Takeaway: Foreign subsidies, tariffs, and market controls continue to shape global sugar competition facing U.S. growers.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Drought Harvest Livestock Pressures Shape State Agriculture Nationwide
Weekly ethanol output fell to its lowest level since January as inventories continued to decline.
Winning bids averaged about $1.3 million as demand for 2027 grain rail capacity increased.
Rising Treasury yields could keep farm borrowing costs elevated heading into 2027.
USDA reported 2.10 billion bushels of corn on hand, well above trade expectations.
Mid-Atlantic farmers are locking in 2027 fertilizer contracts now, as nitrogen imports and market uncertainty make input-cost planning a key risk-management concern.