New Delhi, Dec 15 (PTI) Sugar industry body ISMA on Wednesday said a WTO panel’s ruling against India’s support measures for the sector will not impact mills and sugarcane farmers.
Indian Sugar Mills Association (ISMA) Director General Abinash Verma also said the country’s sugar exports will not be hurt as there are no financial assistance for outward shipments for the current 2021-22 marketing year (October-September).
On Tuesday, a dispute panel of the World Trade Organisation (WTO) ruled that India’s support measures for the sugar sector were inconsistent with the global trade norms.
Reacting on the development, Verma said the government has already rejected the findings of the panel and decided to move the Appellate Authority of the WTO against the ruling.
The government has already contended that all the facts and data submitted by it to the WTO panel have not been appropriately considered by the panel while taking a decision on the complaints of Brazil, Guatemala and Australia, he added.
“First and foremost, as soon as the Indian Government submits an appeal to the Appellate Authority, as per WTO rules the current subsidies and domestic market support can be continued till any final decision is taken by the Appellate Authority,” Verma said.
Secondly, he said, there is no export subsidy for sugar as of now and “therefore there is absolutely no impact of the order of the WTO panel with regard to Indian sugar exports.” Further, the ISMA DG said the export subsidies which were being given in the last few years conformed to the WTO rules.
“Thirdly, the WTO Rules allow domestic market support for any commodity, including sugar and sugarcane, wherein the government can give market support upto 10 per cent of the value of the commodity.
“The government has time and again said that the domestic market support on sugarcane is within the limit allowed by the WTO,” he said.
Stating that the government policies on export of sugar and the subsidies therein, which were being given in the last few years, were as per WTO rules, Verma said therefore there will be “absolutely no impact on the Indian sugar mills or the sugarcane farmers.” In 2019, Brazil, Australia and Guatemala dragged India into the WTO’s dispute settlement mechanism alleging that New Delhi’s sugar subsidies to farmers are inconsistent with global trade rules. Brazil is the largest producer and exporter of sugar in the world.
The WTO circulated the panel’s reports in the cases brought by Brazil, Australia and Guatemala in ‘India – Measures Concerning Sugar and Sugarcane’, according to a statement by the organisation.
Giving separate conclusions and recommendations on complaints by the three nations, the WTO panel stated that “we find that India is acting inconsistently with its obligations under Article 7.2(b) of the Agreement on Agriculture”.
The panel has recommended that India bring its “WTO-inconsistent” measures into conformity with its obligations under the Agreement on Agriculture.
India on Tuesday had said there would be no impact of the WTO panel’s findings on sugar on any of the country’s existing and ongoing policy measures in the sugar sector.
The Indian government 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, an official statement had said. PTI MJH CS MJH ABM ABM
