Australia questions India’s sugarcane support under WTO rules
Australia has raised WTO concerns over India’s sugarcane support, saying it exceeded the permitted 10% limit in seven years between 2018-19 and 2024-25. Australia estimates market price support rose to ₹1.52 lakh crore in 2024-25.
Australia has raised concerns at the World Trade Organisation (WTO) over India’s sugarcane support, claiming that the support provided to farmers exceeded the WTO-prescribed limit in seven years between 2018-19 and 2024-25, The Pioneer reported.
Australia has sought clarification from India on its policies for sugarcane and sugar, citing India’s importance in the global sugar market as the world’s second-largest producer and third-largest exporter.
Under the WTO’s Agreement on Agriculture (AoA), domestic support for sugarcane is allowed up to 10% of the total value of production.
In its submission to the WTO, Australia said developments in India’s sugar market have a considerable bearing on international sugar prices and trade. It said it was ready to discuss with India and other WTO members the impact of India’s support for sugarcane prices and the level of support resulting from it.
Australia’s submission said India’s support for sugarcane prices appeared to be “vastly in excess” of the limit provided under Article 6, paragraph 4 of the AoA.
The paper pointed to the fair and remunerative price (FRP) fixed by the Indian government for sugarcane every season. The FRP effectively sets the minimum price that sugar mills pay farmers for sugarcane.
Australia also highlighted additional payments made to farmers. These include premiums linked to higher production efficiency and, in some states, payments made by sugar mills under State-Advised Prices (SAPs).
Based on its calculations, Australia estimated that India’s market price support for sugarcane increased from Rs 1.125 lakh crore (USD 15.9 billion) in 2018-19 to Rs 1.52 lakh crore (USD 17.7 billion) in 2024-25.
The estimated support was highest at Rs 1.55 lakh crore (USD 18.9 billion) in 2022-23.
Australia has cited these figures in arguing that India’s sugarcane support was significantly above the ceiling permitted under WTO rules.
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Source : ChiniMandi
