Panel calls on India to end sugar subsidies

On 14 December, a World Trade Organization (WTO) special group ruled in favor of Brazil, Australia and Guatemala in their disputes with India over sugar. These three countries had filed individual complaints against Indian subsidies on food in 2019.

Overall, these countries put forward various supports from the Indian government to sugarcane growers through mandatory minimum prices as well as clauses of export of sugar, of a character inconsistent with WTO regulations.

In its report, the panel, which acts as a court of first instance within the UN body, estimates that India has effectively sold more than 10% of the value of sugar cane production to operators between 2014/2015 and 2018/2019. Domestic support for The level provided in the Agreement on Agriculture.

In terms of shipments, the group also believes that the country has not made any commitments to curtail its support for sugar exports. ,We recommend that India bring its WTO-incompatible measures in line with its obligations under the Agreement on Agriculture and the Agreement on Subsidies and Countervailing Measures. [SMC], said the panel.

If on behalf of the complainants we welcome the decision of the WTO, India on its part has already announced that it will appeal against this decision. In addition, the second sugar producer that supported the group’s findings “unfair and wrongSaid that they will not have any effect on the current Chinese policies.

As a reminder, India produced 33.7 million tonnes of sugar in 2020/2021. Brazil, Australia and Guatemala respectively 1. take overIs, 4th and 6th Rank in terms of exports.

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