Finance newspaper Valor reports that a World Trade Organization (WTO) dispute panel has reached a verdict favoring Brazil over India with regard to sugar export subsidies. Back in 2019, Brazil issued a complaint against Indian incentives for sugar producers, as New Delhi financially supports a sector employing more than 50 million farmers in politically sensitive states such as Uttar Pradesh and Maharashtra.
According to Brazilian WTO delegates, India’s measures have caused losses of around USD 1.3 billion to the South American country’s own exporters.
The decision does not come as a surprise. Indian news website Mint quoted a New Delhi government official who said three weeks ago that “there is not much hope of [India] winning the case.” However, they added that “India has the option of lodging an appeal and the case may linger on as there is no appellate body at present.”
Per UN estimates, Brazil and India should remain the world’s top sugar producers for at least the next decade. By 2030, Brazil is likely to account for 21 percent of global production — with the South Asian country coming second with 18 percent.
Search
