New Delhi: Leading global sugar producers have joined hands and approached the WTO, asking the multilateral body to seek details from India on subsidy to exporters at a time when the country is set to double the sweetener exports.
The World Trade Organisation has asked India to furnish full details of the "subsidy" announced recently for its sugar exporters, after Australia and Thailand took the issue to WTO in Geneva.
The issue of India giving subsidy to its sugar exporters was discussed at the meeting of the WTO Agricultural Committee in Geneva on November 21 where New Delhi was asked to respond to Australia and Thailand, leading producers and exporters of sweetener in the international market.
"Australia and Thailand sought information and clarification, which India said it would supply shortly," the WTO said.
The Indian government has been compensating exporters to the extent of Rs 1,350 per ton in coastal states and Rs 1,450 per ton in other states. However, the government has remained cautious in usage of the words for extending the sop lest the move should attract WTO provisions against subsidy.
The government says it is only "defraying" the transport cost, which should not be treated as subsidy.
India is set to displace Brazil as the number one sugar producer in the world with an estimated output of 30 million tons and double its exports to 4.5 million tons in 2007-08, according to the UN body - Food and Agriculture Organisation.
The world sugar production this year is estimated to reach 169 million tons (raw sugar equivalent), 2.7 per cent more than in the previous year, and about 12 million tons higher than the projected global sugar consumption of 157 million tons.
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