The World Trade Organization dispute resolution panel has ruled against India’s sugar subsidy and in favor of complainants Brazil, Guatemala and Australia.
The commerce ministry refuted the panel’s findings, which were circulated on Tuesday, as “totally unacceptable for India”. Stating that it has initiated all necessary measures to protect its interests and file an appeal, the ministry said the existing subsidy policies will continue as “India believes that it is not meeting its WTO obligations”. are in line with.
The controversy dates back to 2019, when three major sugar-exporting countries challenged some of India’s policies for the sugar sector at the WTO.
The complainants alleged that the domestic support given by India to sugarcane farmers exceeds the limit prescribed by the World Trade Organisation, and India has also provided prohibited export subsidies to mills.
After several inquiries, the panel circulated its report to the members on Tuesday, though it has yet to be adopted. ,[We] The panel has concluded that India recommends withdrawal of its restricted subsidies under production support, buffer stock and marketing and transport schemes within 120 days of the adoption of our report.
The panel’s report “draws some incorrect conclusions about our plans to support sugarcane growers and exports,” the commerce ministry said in a statement. “The panel’s findings are completely unacceptable to India. The panel’s findings are irrational and not supported by WTO rules. The panel has also avoided the key issues which it was bound to determine. Similarly, the panel’s findings on alleged export subsidies undermine logic and justification. India believes that its measures are in line with its obligations under WTO agreements.”
The ministry said that India has taken all necessary steps to file an appeal to the World Trade Organization against the report to protect its interests and to protect the interests of its farmers, the ministry said, adding, “Findings of the WTO Panel on Sugar will not have any effect on anyone regarding India’s current and ongoing policy measures in the sugar sector.
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