New French sugar tax proposal a 'sham,' food industry group says

PARIS, Oct 1 (Reuters) - A proposed French tax on high-sugar processed food is 'a sham' that will hurt struggling manufacturers and consumers while failing to address long-term health issues, the country's food industry association said on Thursday.

• In its 2027 budget, the French government included a plan to extend a sugar levy on sweetened drinks to ultra-processed foods, aiming to bring in €300 million ($337 million).

• The measure would further squeeze a food industry in which more factories have closed than opened in France this year for the first time, Jean-Francois Loiseau, chairman of ANIA, told Reuters.

• "This is all a sham," he said on the sidelines of a conference.

• Food makers have reduced fat and sugar content in recent years, but it was difficult to go further for some recipes without affecting product quality, he added.

• The sugar sector in France and Europe has faced a wave of factory closures, with falling consumption adding to pressure from low commodity prices and market liberalisation.

• The minority government's budget will now go before parliament, which will likely amend the legislation substantially.

• ($1 = 0.8894 euros)

(Reporting by Sybille de La Hamaide, writing by Gus Trompiz, editing by Rod Nickel)