Competitiveness of Sugar Production and Trade in BRICS Countries and Implications for Indian and World Sugar Sector

Abstract

The paper analyses BRICS sugar production scenario, intra-BRICS sugar trade, and the competitive landscape of sugar trade of each member country. BRICS accounts for 55.44% of world sugar production, 90% of which is produced from sugarcane. Intra-BRICS sugar trade is worth 17.18 billion USD representing 41.18% of world sugar trade. The member nations prefer intra-BRICS sugar imports while they are less dependent on intra-BRICS exports. Intra-BRICS sugar exports as per cent of country’s total sugar exports were quite varied from India and Indonesia (6–8%), China (17%) to Brazil (38%). India, Egypt, Ethiopia, and Iran depend more on intra-BRICS sugar imports, up to 95% of their total quantum compared to South Africa (15%). Many BRICS members are persistently exporting conventional products while a few have diversified their exports. Brazil, Egypt, India, and South Africa have the competitiveness in the export of “sugar, molasses and jaggery” product group, while Iran, Egypt, and South Africa have competitive edge in the export of sugar confectionery. The average tariff levels of all BRICS members are quite varied, high for some members, and biased also towards some countries. Brazil faces the highest, and Ethiopia benefits from the lowest Indian tariff. South Africa and UAE apply the highest tariffs on Brazil products. Though sugar trade facilitating business environment in member countries has improved over the years, India needs to develop a long-term strategy for strengthening intra-BRICS investment and trade relations. India also needs to be proactive for enhancing policy-level cooperation amongst members for diversification of sugar exports and generating more conducive and facilitating intra-BRICS sugar production-cum-trade environment.