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WTO members raise questions over India's sugar subsidy |
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NEW DELHI: Some members of the World Trade Organization (WTO), including Australia, the European Union, Pakistan, have raised questions over India's export subsidy on sugar.
Thailand, New Zealand and Colombia have also expressed concerns at the WTO's Committee on Agriculture.
"India was asked about its export subsidy programme for sugar, with Australia, Thailand, the EU, Pakistan, New Zealand and Colombia all saying they were concerned at a time when members have agreed (in Bali) to reduce and eventually eliminate these types of subsidies," the WTO said.
It said that India's explanation was similar to that given in previous meetings.
"It (India) said no incentives have been paid out to producers so far," the WTO added.
Earlier in July also, a few members have raised similar questions.
In February this year, India had announced a subsidy for exports of raw sugar up to 4 million tonnes in order to help the cash-starved industry clear sugarcane arrears to farmers. The subsidy scheme ended in September 2014.
The subsidy was originally fixed at Rs 3,300 per tonne for February-March and the Centre had decided to review the quantum of subsidy every two months.
Under the export incentive scheme, India had exported 7 lakh tonnes of raw sugar in 2013-14 marketing year (October- September).
Sugar production of India, the world's second largest producer after Brazil, has increased by 22 per cent to 5.6 lakh tonnes till November 15 of the current 2014-15 season as compared with 4.62 lakh tonnes in the year-ago period, according to industry body ISMA.
The government has pegged overall sugar output at 250.5 lakh tonnes for this season, while the ISMA has estimated the production at 250-255 lakh tonnes.
The production estimates for the current marketing year are higher than 244 lakh tonnes of sugar produced in 2013-14.
Further India has also conveyed that it complies with WTO rules on agricultural domestic support.
"Its spending on price support programmes, for instance, falls under the limit of 10 per cent of the value of production -- a limit on trade-distorting domestic support allowed generally to developing countries when they don't have their own separate commitments," it said.
Some of the questions being raised by members include "Why India notified its support in US dollars instead of rupees...Some members expressed concern that minimum price support and public stock holding programmes could impact other countries through exports," it added.
Source : economictimes.indiatimes.com
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