Market

Market

Sunday, November 8, 2009

SUGAR 'FRAUD' IN EUROPE-MILKING THE SUBSIDY SYSTEM!

Developing countries are often blamed for high corruption supposed to be widely prevalent in practically every sphere of human activity. Compared to the economic frauds committed by large players with strong financial and political clout in some of the richest countries in the world, corruption in third world countries pales into insignificance. Latest skeletons to emerge from the"cup boards" of these countries is the gigantic sugar scam running into millions of dollars, thanks to the much despised agricultural subsidy program that is put in place in many of the super rich countries of the West.

"In the sprawling European subsidy program — which lavishes more than 50 billion euros ($75 billion at current exchange rates) a year in agricultural aid — no commodity is more susceptible to fraud, chicanery and rule-bending, experts say, than simple household sugar. Across Europe there are some 2.5 million acres of beet fields that will produce 16.7 million metric tons of sugar this year for an industry worth 7 billion euros. Last year the European Union spent 475 million euros in price supports for sugar, including export subsidies. Then it spent another 1.3 billion euros on restructuring aid to reform a subsidy regime so that lavish it even prompted cold-weather Finland to start producing more sugar". Unfortunately the subsidized sugar, intended for consumption within the EU, finds its way to destinations out side the region distorting global sugar prices due to ineffective control of sugar movement across the continent..

The ingenious way to milk the subsidy system by the organized industry goes to show the extent to which man can stoop down to make an extra buck! Who is the real beneficiary in this charade is not clear but sugar producing nations like Brazil, India and others must watch out to country act such misdemeanors in order to protect their own sugar industry.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

No comments: