Australia steps up sugar trade fight with India, seeks WTO probe


    Australia has formally asked the WTO to set up a panel to probe if India was breaching its obligations.

    Australia has intensified its sugar related dispute with India by formally asking World Trade Organisation (WTO) to set up a panel to probe if the world's second-largest sugar producer was breaching its obligations, a media report said Friday.

    In March, Australia was joined by Brazil to lodge a formal complaint against India with the WTO alleging that India's continued sugar subsidies to farmers have led to a "glut" and "depressed" global prices.


    Australian Financial Review report quoted Australian Trade Minister Simon Birmingham saying "India has not taken concrete action to response to Australia's long-held concerns and continues to provide subsidies in breach of its WTO commitments."

    "The longer these unfair subsidies continue, the greater the impact will be on our hardworking Australian cane growers and millers and the regional jobs they create," he said.

    It says India's subsidies have contributed to a global sugar glut and hurt Australian farmers.


    Agriculture Minister Bridget McKenzie said, "This is about protecting over 40,000 jobs and the regional communities that are supported by our sugar industry.”

    Australian government's latest action has come with a view to support its 2 billion dollar sugar export sector.

    The federal government action has been welcomed by local cane growers and millers.

    "As an unsupported, efficient sugar producer, Australia wants to see India commit to major reforms that at least bring its subsidies in to line with its WTO entitlements," Australian Sugar Milling Council chief executive David Pietsch said.

    "If it played by the WTO rules it committed to, India could make two important changes: drop its use of export subsidies and link sugarcane prices to sugar prices."

    Also Read

    9 Comments on this Story

    Shrikant Baldua389 days ago
    need of the hour is water council where all states are members ( like GST) all decision in the national interest , not just for an area or state. Water grid by mapping all water bodies , water intensive industry only after getting clearance from council, desalination of sea water and its pumping using Israel know how and solar energy, Recharging and recycling made compulsory for high rise and complexes over 20 or 25 units . all these in mission mode with set time line before water can result into social unrest and derail of whole economy into a 5B club
    Shrikant Baldua389 days ago
    when India is water deficient there is No point of growing sugar and rice which are water intensive crops , except where there is excess rainfall.better to optimise water use and grow only those crops which consume less water , so that enough water left for drinking . For this to happen we need a national water policy and a water council ( like GST) where all states are member and have a national water policy with concenus . No hard decision , educate farmers involving local leaders , religious groups , incentivised them for alternate crop and gradually reduce MSP for water heavy crops like sugar cane , rice etc , a 360^ long term approach
    Merry Airman390 days ago
    Why are we protecting sugar subsidies, railway fare subsidies and fixed govt. pensions ?? This govt. has awarded lifelong pensions to first time MPs. Just reforming the pension system will release enough funds to increase the health spend four times.
    The Economic Times