Australia takes India to WTO over sugar subsidies

Australia said on Friday that it was taking legal action against India, the world's second-largest sugar producer, at the WTO over subsidies which it said caused a "significant downturn" in world sugar prices and hurt Australian producers.

Australia alleges that the subsidies, which have seen Indian sugar production leap from an average 20 million tonnes to 35 million tonnes this year, far exceed the level of farmer assistance permitted under WTO rules.

The action, known formally as a counter notification, comes after Australia has repeatedly raised the issue with India directly, ABC News reported.

It means the issue will initially be discussed at the WTO's Committee on Agriculture meeting scheduled for later this month.

Trade Minister Simon Birmingham said it was time India, the world's second-largest sugar producer, was held accountable for its market distorting policies on sugar.

"We have raised our industry's deeply held concerns on numerous occasions with senior levels of the Indian Government," Birmingham said.

"We are disappointed our concerns haven't been addressed and now see little choice other than to ramp up our efforts to stand up for the rights of our cane farmers and sugar millers.

"We will now engage in formal discussions with India and other WTO members regarding this issue at the upcoming WTO Committee on Agriculture meeting later this month."
"Our relationship with India is much, much deeper than one issue."