India to withdraw sugar export subsidy in new season

India is expected to withdraw its sugar export subsidies in the new season, which begins in October, as a sharp rise in international prices for the commodity makes it easier for the country’s mills to sell on global markets, according to a high-ranking local government official on Tuesday.

“In the current circumstances, as we see the scenario, there seems to be no need for subsidy support. If exports can happen by themselves, it’s also better for global markets that no subsidies are given,” said Sudhanshu Pandey, India’s most senior civil servant and Secretary of Consumer, Food, and Public Distribution.

India, the world’s largest sugar producer after Brazil, has given incentives to foreign sales for three years in a row, helping New Delhi to emerge as a significant and stable exporter of the commodity.

Rival suppliers have often opposed India’s sugar export subsidies. After protests by Brazil, Australia, and Guatemala, the World Trade Organization (WTO) decided to create panels in 2019 to assess complaints against the measure taken by India – which, in turn, maintains that the subsidies do not violate WTO rules.

Source: Money Times

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