4 hrs ago
Australia Challenges India’s Sugarcane Support at WTO Again
Australia says India gives sugarcane farmers much more support than WTO rules allow.
It estimated the support at Rs 1.52 lakh crore in 2024-25.
Australia said the support was between 90% and 95% of the value of sugarcane production.
WTO rules generally use a 10% limit for this type of support.
Australia has asked India to explain its policies.
It has not asked the WTO for an immediate ruling against India.
The calculation uses prices from 1986-88 as a fixed benchmark.
India says this old benchmark should be revised because cane prices have risen greatly since then.
The issue could return to wider WTO talks about agricultural subsidies.
Australia alleges India’s sugarcane market price support exceeded the WTO’s 10% limit.
Australia estimated India’s support at Rs 1.52 lakh crore in 2024-25.
The alleged support-to-production value ratio ranged from 90% to 95% between 2018-19 and 2024-25.
Australia requested clarification under the WTO Agreement on Agriculture rather than seeking an immediate ruling.
India has challenged the use of 1986-88 prices as the benchmark for calculating farm support.
- Who
- Australia and India, with the issue being considered by the World Trade Organization.
- What
- Australia has questioned India’s sugarcane market price support and related export measures.
- Where
- At the World Trade Organization’s Committee on Agriculture.
- When
- The support under review covers 2018-19 through 2024-25; Australia’s latest communication was submitted during the current WTO discussions.
- Why
- Australia alleges that India’s support exceeds WTO limits, while India questions the use of the 1986-88 reference price for calculating support.
Australia’s Position
India’s Position
Level of sugarcane support
Australia’s Position
Australia calculates that India’s support was far above the WTO’s permitted 10% product-specific limit, reaching 90%-95% of production value during the period reviewed.
India’s Position
India’s position, as reflected in its objections to the calculation method, is that the 1986-88 benchmark does not reflect substantially higher administered cane prices today.
WTO process
Australia’s Position
Australia is seeking clarification and discussions about measures that it says facilitate sugar exports, while keeping the issue on the WTO’s agricultural agenda.
India’s Position
India appealed an earlier WTO panel report in 2021, preventing the panel’s findings on its sugar and sugarcane policies from becoming an adopted WTO ruling.
Reference price
Australia’s Position
Australia’s estimate applies the fixed 1986-88 external reference price required for calculating this form of domestic support.
India’s Position
India has questioned the continued use of the 1986-88 reference price and has sought revision of the base year.
Key facts
- Alleged 2024-25 support
- Rs 1.52 lakh crore
- Alleged support ratio
- 90%-95% of sugarcane production value
- WTO permitted limit
- 10% of production
- Review period
- 2018-19 to 2024-25
- Calculation benchmark
- 1986-88 fixed external reference price
- Nature of Australia’s submission
- A request for clarification, not an immediate request for a WTO ruling
- Earlier dispute
- India appealed a WTO panel report in 2021, preventing its findings from becoming an adopted ruling
Sources
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