But the real beneficiaries of these millions of tax dollars are not the farmers, but the bulk buyers of the sugar – especially Red Bull, who buys about 25% of the sugar produced in Switzerland, according to local press reports.
Unica has contracted King & Spalding as independent legal council in Geneva and is also working with the Brazilian think tank Agroicone, to help with data on the Thai sugar industry.
Last February, the government decided to give mills a subsidy of INR4,000 ($64) a tonne for exports of up to 1.4 mln tonnes in an effort to reduce stockpiles after five straight years of surplus output. Despite that a sharp drop in the Brazilian Real has thwarted India’s efforts to step up raw sugar exports. Brazil’s raw sugar is currently available at $310-$312 a tonne, while Indian raw is priced at $345 a tonne.
The central government has allocated 120 billion yuan ($19.21 billion) to farm machinery subsidies since 2004, supporting the purchase of more than 35 million pieces of machinery, noted People’s Daily. That has helped raise mechanization levels across China’s farms to 61% last year from 33% in 2003, it said.