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India loses WTO dispute over sugar subsidies

News: India has lost the dispute over subsidies of sugar exports at the World Trade Organization. In 2019, Brazil, Australia, and Guatemala requested dispute consultations with India regarding domestic support measures and alleged export subsidies provided by India to producers of sugarcane and sugar.

Views: We believe there will be no impact of the current ruling in the matter of export subsidy given India has already discontinued export subsidy from the current year. Moreover, India’s appeal in appellate body of WTO would work as a veto given the body is non-functional. We also believe India would not need to export any substantial quantities of sugar in future as the ethanol blending programme would take care of excess sugar stocks in the country.

Impact: Neutral