Sugar Subsidy

India is not looking at allowing more sugar exports, government and industry officials said on Thursday

The appeal was filed by India in the WTO's Appellate Body, which is the final authority on such trade disputes

In the cases brought before the WTO in 2019, the rival producers alleged that India had broken WTO rules by providing excessive domestic support and export subsidies for sugar and sugarcane

In its response to WTO members over the concerns, India said the support given was largely to small and marginal farmers and was in accordance with its commitments at the trade body

The Centre has so far cleared Rs 1,800 crore in subsidy to sugar mills for undertaking a mandated export of 6 million tonnes of the sweetener in the 2020-21 season-ending this month

India, the world's biggest sugar producer after Brazil, incentivised overseas sales for three years in a row, helping New Delhi emerge as a significant, stable exporter of the commodity.

The combined market capitalisation (m-cap) of the country's top 15 sugar manufacturers was down 2.8 per cent on average on Friday

The government reduced the export subsidy from Rs 5.85 / kg to Rs 4.0 / kg on any sugar contracted for export on or after May 20, 2021

Trade sources said it might not impact exports much; of the existing quota of 6 million tonnes, 5.7 million tonnes have already been contracted at higher subsidy rate

Balrampur Chini, Triveni Engineering, Uttam Sugar Mills, Dhampur Sugar Mills, Shree Renuka Sugars, EID Parry and Dwarikesh Sugar Industries were up in the range of 3% to 5%

Sugarcane farmers to get the amount directly into their bank accounts

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The decision will benefit 5 crore farmers, said Javadekar, who is also union environment minister

India is the world's biggest consumer of sugar, but as the second biggest producer, produces more than required.

India, the world's second-largest sugar-producing country, had to offer export subsidies during the last two years in order to reduce surplus stocks

Failure to set a new subsidy allocation will eventually delay exports from the world's second biggest producer of the sweetener and support global prices, which are trading near eight-month highs

In 2019, Brazil, Australia and Guatemala dragged India into the WTO's dispute settlement mechanism alleging that New Delhi's sugar subsidies to farmers are inconsistent with global trade rules

Sector says new drought-resistant, high-yield and high-recovery cane to be introduced next year

The factories were able to supply only a third of OMC requirements in the second tender

Newer opportunities such as exporting to Indonesia are being thrown up but early closure of mills could be an issue