WTO asks India to remove raw sugar export subsidy
- Few WTO members, including Australia in a meeting of Agriculture Committee of the World Trade Organization (WTO) in Geneva demanded India-the third largest exporter of sugar should remove export subsidy (notified by Central Government) of Rs.3,300 a tonne on raw sugar as it distorts the global trade.
- The topics aroused in meeting was on India’s sugar programme and India’s domestic support for rice and wheat and its food security programme.
- Australia, Colombia, Brazil and the EU want to know the legal basis for extending export subsidy under WTO regime.
- India’s policy was designed to encourage diversification away from white sugar to raw sugar as intervention payments are not paid yet.
- Australia claims that Rs.3,300 a tonne incentive payment was equivalent of 14-16 % of the world price which needs to be removed.
- Trade Distortion
- Export Subsidy
- Trade Diversification