This is why Australia and Brazil drag India to World Trade Organisation over sugar subsidies



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Australia and Brazil have decided to go against India at WTO (World Trade Organisation) over sugar subsidies. Both countries have alleged that subsidies paid to farmers in India have led to a sugar glut and depressed global prices.

According to the media report, Australian Trade Minister Simon Birmingham said, “Sugar subsidies are hurting sugarcane farmers and millers whether they’re in Australia, Brazil, or any other country in the world.”

“We have no option rather than registering formal WTO dispute action along with Brazil” he further added.

“The world sugar price has hit a 10-year low, crippling sugar farmers in Australia who have also had to combat drought and floods” Birmingham continued.

Earlier also Australia had moved to WTO against India alleging significant downturn in world prices and losses to its country cane growers and millers. Following which India has proved Australia’s allegation that its minimum support price (MSP) for sugar exceeded limits set by the WTO is wrong deliberating that sugar does not fall within the circumferences of prescribed limits, as the commodity is not under the procurement of the government. India also clarified that the MSP was to prevent the despaired sale of sugarcane by farmers and does not qualify as domestic support.

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