Aussie farmers prepared to fight against sugar tax

Australian farmers are prepared to put up a fight should a similar "sugar tax" announced in Britain overnight be implemented in Australia.

Chancellor of the Exchequer George Osborne surprised British government MPs and the nation's drinks industry in his budget speech that he will introduce a tax on the volume of sugar contained in imported or locally produced sweetened drinks to help tackle childhood obesity. Its estimated the levy could as much as 80 percent on a two-liter bottle of cola.

Health advocates, including celebrity chef Jamie Oliver have told Australia to "pull your finger out" in implementing a similar scheme, reinvesting the funds back into the ailing health system.

However Australia's sugar farmers, the world's third largest sugar producer worth 2 billion Australian dollars annually said any such tax would "cascade" back to producers and they would campaign against the measure.

"We will do everything in our power to resist it," Canegrowers Queensland chairman Paul Schembri told Australia's national broadcaster on Thursday.

"We are quite confident that there isn't the political climate in Australia to have this tax introduced at this point in time."

Australian sugar production is expected to increase over the 2016/17 season, up 6 percent to 5.08 million tonnes according to the Australian government agriculture forecaster ABARES, as the softening El Nino system improves weather conditions. Endit