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You need to read Article 1 Australia has joined forces with Brazil and Guatemala taking on India in a sugar cane subsidy dispute to answer

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You need to read Article 1 \"Australia has joined forces with Brazil and Guatemala taking on India in a sugar cane subsidy dispute\" to answer the questions below. Part (a) The article specifically mentions the following: \"Off the back of these subsidies India has ramped up its sugarcane production. In 2017-18 they produced 32.2 million tonnes of sugar and 30 million in 2018-19, compared to 20.3 million tonnes in 2016-17" Please use the concepts of supply of sugarcane and demand for sugarcane to explain why the Indian subsidies have allowed India's sugarcane production to increase in 2017-2018 and 2018-2019 compared to the period of 2016- 2017. Hint: Students can assume that India is a small importer of sugarcane and it provides subsidies to its sugarcane farmers. [4 marks] Part (b) Provide a welfare analysis of the impact of India's subsidies to its sugarcane farmers. In other words, use the concepts of supply and demand to illustrate the impact of the subsidies on Indian consumers, Indian sugarcane farmers and the Indian government's revenue. Hint: Students can assume that India is a small importer of sugarcane and carry out the welfare analysis accordingly. [6 marks]

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