The Indian government is negotiating with Brazil to address a sugar dispute at the World Trade Organization (WTO).
Sources within the government revealed that the Ministry of Commerce is coordinating efforts with relevant departments to find a resolution.
Similar processes are being followed for other complainants involved in the sugar dispute at the WTO based in Geneva.
In 2019, Brazil, Australia, and Guatemala raised allegations against India, stating that the country’s sugar subsidies to farmers violated global trade regulations.
The Department of Commerce is actively collaborating with concerned ministries to explore possible alternatives, emphasizing the significance of this exercise.
The WTO dispute settlement panel declared on December 14, 2021, that India’s support measures for the sugar sector were inconsistent with international trade norms.
Subsequently, in January 2022, India filed an appeal against the panel’s ruling with the WTO’s appellate body, which serves as the final authority in such trade disputes.
Brazil holds the position of the world’s largest sugar producer and exporter, while India ranks as the second-largest producer.