PARIS, Jan 27 (Reuters) - French cognac producers plan

to pay to tear their vines out by the roots to cut output in

order to address a drop in demand ‌for the high-end liquor due to

tariffs.

Cognac was one of the ​main casualties of the recent trade

tensions between the ‍European Union, the United States and

China, ⁠which have ⁠threatened to jack up tariffs on it.

An anti-dumping probe has ‌also hit brandy sales in ​China.

France's main association of cognac wine growers will pay

its members 6,000 euros ($7,145) per ⁠hectare of vineyard

destroyed, ‍on top ​of 4,000 euros already offered by the French

agriculture ministry, the UGVC's head said on Tuesday.

"We ‍need to re-align the volume of production with demand,"

UGVC head Anthony Brun told Reuters.

The UGVC estimates the total volume of cognac sold has

fallen by more than a third in the ​past ‍three years, to about

140 million bottles in 2025.

Brun said it will borrow money over ​a 10-year period to

finance the handouts. He declined to estimate how many hectares

will be destroyed.

Recent trade deals between the EU and Mercosur, as well as

the EU and India, may open new markets for cognac, ​but it will

take years to build lasting demand, Brun said, adding India

seems to offer significant potential for the industry.

($1 = 0.8397 ‍euros)