Sugar Sector in India – Significance and Geographical Distribution

Ruling in favour of Brazil, Australia and Guatemala (major sugar-producing nations) over a trade dispute with India, a World Trade Organisation (WTO) panel has asked India to withdraw its sugar subsidies under the Production Assistance, the Buffer Stock, and the Marketing and Transportation Schemes. The panel regarded the subsidies as being inconsistent with WTO obligations under the Agreement on Agriculture and the SCM Agreement. Although India has considered the decision “completely unacceptable”, the WTO’s move draws attention towards India’s sugar sector, its significance and how the government tries to promote it for the growth of Indian agriculture and economy.