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India Loses WTO Dispute Over Sugar-Export Subsidies

  • WTO finds India offered illegal subsidies for sugar production
  • India has pledged to refrain from sugar subsidies in 2022
Production Inside The MSM Malaysia Holdings Bhd. Sugar Refinery
Photographer: Samsul Said/Bloomberg
Updated on

A World Trade Organization panel ruled that India violated international trade rules when it offered excessive subsidies for the production and export of sugar and sugarcane.

India’s policies were inconsistent with WTO rules that govern the levels at which nations can subsidize domestic agricultural production, according to a decision posted Tuesday on the WTO’s website. Under WTO rules, India’s sugar subsidies are capped at a de minimis limit of 10% of the value of production.