MEMBER for Dawson George Christensen has called for "tough action” following the Indian Government's decision to dump five million tonnes of subsidised sugar onto the world market last week.

The Indian Government's overnight announcement last Thursday saw the global price of raw sugar plunge below US10 cents (14 cents) a pound - the lowest it's been in a decade.

Mr Christensen said he believed India was in breach of international trade rules in a "callous and irresponsible” move that "threatens bilateral relations”.

"India's move overnight to dump five million tonnes of subsidised sugar onto the world market proves that they simply don't care,” Mr Christensen said.

"This glut of sugar has sent the global price into another downward spiral, wiping another $14 per tonne off the price in one night. That equates to a drop of about $170 a tonne over the past 10 months.”

Mr Christensen said the sugar dump would have a "disastrous impact” on Proserpine cane growers and "on Proserpine full stop”.

"Basically, we've got a situation where input costs and production costs for cane growers are ever increasing, whether it's the cost of power, irrigation or products used on the farm,” he said.

"At the same time, the world price of sugar is going down and, yes, it makes it much worse with India dumping all the subsidised sugar. The time for talking is now well and truly over.”

Not only will the collapse of international market prices have cane farmers "working for nothing”, MrChristensen said the financial struggle would filter through the local community.

We'll have a situation where the basic price of production is more than what the final product is worth, Mr Christensen said.

"That means obviously no income and no money being spent in the local economy,” he said.

Trade Minister Simon Birmingham lodged an official complaint with the Indian Government following the decision last Thursday.

"If India has breached World Trade Organisation rules - and I believe they have - then there will be penalties pursued against them,” Mr Christensen said.