According to this article there seem to be lots of countries that subsidy sugar production:
- Pakistan struggles to export sugar surplus as global prices plunge
- Morocco sees sharp rise in cooking gas, sugar subsidies
- China slaps heavy penalties on sugar imports
- (India’s) government extends stock limits on sugar traders for six months
Of course this might create a disadvantage for farmers within a country not providing such subsidies, thus leading to some sort of spiral (keep or increase subsidies to compensate for subsidies within other countries).
This article argues about distortions these subsidies create:
Global subsidies make sugar the world’s most distorted commodity market, where prices swing violently and dip well below production costs. U.S. policy protects consumers from that roller coaster and has kept prices affordable and stagnant for the three decades.
As a side note, energy subsidies make much more sense as they have an impact on virtually all products and services.
Question: Why are sugar subsidies so prevalent?