The Indian government said on December 12 that the country has informed the World Trade Organization (WTO) that its sugar subsidy policy is a purely domestic issue and does not distort the international sugar trade.

In a written response to the Indian Agriculture Council (Rajya Sabha), Indian Federal Minister CR Chaudhary stated that several member states including the European Union, Australia, New Zealand, Brazil, Canada and Russia, from time to time on the WTO Agriculture Committee, The sugar policy raises questions.

He said that Australia recently submitted a letter to the WTO on India´s offer of sugarcane market price support (MPS), saying that India´s support far exceeds the limits allowed by global trade rules.

India is a member of the World Trade Organization (WTO), which sets rules for global imports and exports.

At the World Trade Organization Agriculture Committee meeting held on November 27th, India informed members that various measures have been taken to address the concerns raised by farmers´ arrears of sugar cane and the impact of the sugar factory cash flow crisis.

He added: "India´s sugar subsidy policy is purely a domestic issue and will not distort international sugar trade because it is in line with India´s obligations under the WTO."