Bitter WTO ruling for India; trade body asks India to withdraw sugar subsidy

A World Trade Organisation (WTO) panel has asked India to withdraw sugar subsidy as the world's second largest producer of sugar allegedly violated global trade rules.

Brazil, Australia and Guatemala had bought the case to the WTO in 2019, claiming India was in violation of 'support' rules by providing excessive subsidy.

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According to the findings of the WTO, India provided support to sugarcane growers in excess of the permitted level of 10% of the total value of sugarcane production.

India believes that its measures are consistent with its obligations under the WTO agreements, and the ministry of commerce and industry said in a statement on Tuesday that a WTO panel’s findings were “erroneous".

“India has initiated all measures necessary to protect its interest and file an appeal at the WTO against the report, to protect the interests of its farmers," said the ministry.