percent of world production and protect producers with prices that are higher than world market prices. The remaining 40 percent of production is in countries that either produce for preferential markets (Fiji, Mauritius, Philippines and many Caribbean producers) and thus receive higher than world market prices, or protect their domestic producers with policies that restrict imports to provide above-market prices to producers (Kenya).

India, the European Union, and Brazil are the largest sugar producers, each with roughly 14 percent of world production during 1999-2001 (Table 7). They are followed by the United States and China, which each produce about 6 percent of the world’s sugar. Trade is dominated by Brazil and Russia, with Brazil accounting for about one-quarter of world net exports and Russia accounting for about 14 percent of world net imports. The EU is the second largest net exporter, and it is followed by Australia, Thailand and Cuba which each export about 8-10 percent of the world’s total. Net imports are widely dispersed after Russia, with the next largest net importer accounting for less than 5 five percent of world imports. India is the largest sugar consumer with about 15 percent of world consumption, followed by the EU with 10 percent, and Brazil with 7 percent.

**Table 7.  Major sugar producers, net exporters and net importers, 1999-2001 average**

|Produce<br>|rs<br>|Net Export<br>|ers<br>|Net Impor<br>|ters<br>|
|---|---|---|---|---|---|
|Country/Region|Million|Country/Region|Million|Country/Region|Million|
||tons||tons||tons|
|India|19.4|Brazil|9.3|Russia|5.2|
|EU|18.6|EU|4.2|Indonesia|1.7|
|Brazil|18.5|Australia|3.8|Japan|1.6|
|U.S.|7.9|Thailand|3.6|U.S.|1.4|
|China|7.8|Cuba|3.2|Korea, Rep.|1.2|
|Thailand|5.4|R. S. Africa|1.3|Canada|1.2|
|Mexico|5.1|Guatemala|1.1|Iran|1.0|
|Australia|4.9|Colombia|1.0|Malaysia|1.0|
|Cuba|3.8|Turkey|0.6|Algeria|0.9|
|Pakistan|3.0|Mauritius|0.5|Nigeria|0.7|
|All Other|38.9|All other|10.3|All other|20.7|
|World|133.3|World|38.9|World|36.6|

<mark>Source: USDA PS&D Database 2002. Note: Data is in raw sugar equivalents.</mark> Among the important changes that have occurred in the world sugar market in the past 20 years has been the shift of production and exports to low-cost producers, the shift of consumption and imports increasingly to developing countries, and the declining share of preference markets in total imports. Beginning in the 1980s, sugar production by the low-cost producers began to increase rapidly, with Australia, Brazil, Colombia, Guatemala, South Africa, and Thailand increasing their combined share of world production from 19 to 29 percent and their share of world exports from 24 to 52 percent from 1980 to 2002. Brazil had the largest increases, with its share of world production increasing from 7 to 17 percent between 1990 and 2003 and its share of exports increasing from 5 to 30 percent. At the same time, consumption and imports were shifting to the developing countries and these imports were at world market prices rather than at the high prices in protected markets in the EU and U.S. About two-thirds of world sugar consumption is now in developing countries, compared to one-half in 1980, and sugar consumption is growing by about 2.6 percent per annum in developing countries 21