Mumbai/New Delhi Trade officials said India could sell more than 6 million tonnes of sugar in the world market this year, with the World Trade Organization ruling that it violated rules by offering export subsidies, unlikely to have an impact on overseas sales , business executives said.
Strong sugar exports from the world’s second-largest producer could keep a lid on global prices, which are currently trading near their highest levels in 4-1/2 years due to lower production in top producer Brazil.
A WTO panel on Tuesday ruled in favor of Brazil, Australia and Guatemala in the 2019 trade dispute with India over sugar subsidies and asked New Delhi to conform to global norms.
Avinash Verma, Director General, Indian Sugar Mills Association (ISMA) said, “As of now there is no export subsidy for sugar and hence there is no effect of WTO panel order with regard to Indian sugar exports.” The apex private sugar producer’s body.
For the current 2021/22 marketing year, India has removed export subsidies for the last three years. The subsidy helped Indian mills export a record 7.2 million tonnes of sugar in the 2020/21 season.
Rival producers said New Delhi has broken WTO norms by providing excessive domestic support and export subsidies for sugar and cane.
Referring to trade organization rules, Verma said India would appeal against the WTO’s decision, but could continue with its existing policies till a final decision.
National Federation of Cooperative Sugar Factories Ltd managing director Prakash Naiknavare said Indian sugar mills are already contracted to export 3.5 million tonnes of sugar this year and may eventually export more than six million tonnes.
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,