Major sugar producers up against India's export sops

Australia, Thailand raise issue at WTO's Geneva meet

Leading global sugar producers have joined hands and approached the World Trade Organisation (WTO), asking the multilateral body to seek details from India on subsidy to exporters at a time when the country is set to double the exports of the sweetener.

WTO has asked India to furnish full details of the "subsidy" announced recently for its sugar exporters, after Australia and Thailand took the issue to WTO in Geneva.

The issue of India giving subsidy to its sugar exporters was discussed at the meeting of the WTO Agricultural Committee in Geneva on November 21, where New Delhi was asked to respond to Australia and Thailand, leading producers and exporters of the sweetener in the international market.

"Australia and Thailand sought information and clarification, which India said it would supply shortly," WTO said.

The Indian government has been compensating exporters to the extent of Rs 1,350 a tonne in coastal states and Rs 1,450 a tonne in other states.

However, the government has remained cautious in usage of the words for extending the sop lest the move should attract WTO provisions against subsidy.

The government says it is only "defraying" the transport cost, which should not be treated as subsidy.

India is set to displace Brazil as the number one sugar producer in the world with an estimated output of 30 million tonnes and double its exports to 4.5 million tonnes in 2007-08, according to the Food and Agriculture Organisation, a UN body.

The world sugar production this year is estimated to reach 169 million tonnes (raw sugar equivalent), 2.7 per cent more than in the previous year, and about 12 million tonnes higher than the projected global sugar consumption of 157 million tonnes.

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SWEET NOTHINGS

WTO has asked India to furnish full details of the subsidy announced recently for its sugar exporters

The Indian government has said it is only defraying the transport cost, which should not be treated as subsidy

India is set to displace Brazil as the number one sugar producer in the world with an estimated output of 30 million tonnes

It is likely to double its exports to 4.5 million tonnes in 2007-08

The world sugar production this year is estimated to reach 169 million tonnes