NFU Sugar, the representative body for British sugar beet growers, has expressed its strong approval of the government’s decision to exclude the UK sugar market from concessions within the newly agreed Free Trade Agreement with India. The organization described the agreement as “balanced and considered”, reports NFU.
This exclusion has been a primary concern for NFU Sugar since negotiations with India commenced in 2022. India stands as a major global sugar producer and typically exports significant quantities. However, its sugar production relies heavily on substantial government support, including subsidies and price guarantees.
The World Trade Organisation (WTO) had previously ruled in 2021 that India’s sugar subsidy system was in violation of international trade rules. Despite India’s appeal against this ruling, the WTO’s appellate body is currently unable to process such appeals, meaning the contested subsidy regime remains in effect.
NFU Sugar has actively campaigned against granting preferential access to the UK market for Indian sugar. They argued that allowing such access would unfairly force British beet growers to compete with a production system heavily supported by what the WTO deemed an illegal government subsidy program.
The organization has diligently raised its concerns with numerous government officials, multiple trade ministers, and even presented its case at the Prime Minister’s office at 10 Downing Street. Following the recent general election, NFU Sugar continued its efforts to inform new decision-makers about the potential threat posed by Indian sugar imports through a series of visits to farms by Members of Parliament.
Kit Papworth, chair of NFU Sugar, stated, “We strongly welcome the government’s decision not to grant concessions on sugar within the UK’s free trade agreement with India.” He emphasized, “The homegrown sugar industry is a true British success story and one of the most efficient sugar producers in the world, but it already faces significantly increased competition following considerable market liberalisation post-Brexit.”
Looking ahead, Mr. Papworth added, “We look forward to seeing the government’s continued commitment to a level playing field on trade as it considers the ATQ for raw cane sugar for 2026 and beyond.” This statement underscores the UK sugar industry’s hope for ongoing government support in maintaining fair trade conditions.
