India to retain sugar export subsidies
Despite the objections raised by rival producers – Brazil, Gautemala & Australia – India is likely to keep the subsidies meted out to its sugar exporters, although it will revise how these are disbursed according to the rules of WTO. India rolled out these subsidies in Setember’18 to incentivise mills for overseas sugar sales and set an export target of 5 million tons for marketing year ending September 30, ’19. This was done with the intention to enable mills to be able to pay the money owed to farmers. Years of bumper cane harvests had reduced the prices of sugar, increased debts & brimming inventories. Besides launching a transport subsidy, the government has also increased the prices given to cane growers.