Context
India recently filed an appeal with the Appellate Body of the World Trade Organization (WTO) disputing a verdict by the WTO’s dispute settlement panel last month on sugar subsidies.
Background
Who determines Sugarcane prices in India?
What factors are considered for determining FRP?
According to the provisions of the Sugarcane (Control) Order 1966, fixation of FRP of sugarcane is done keeping in mind the following factors:
What are the Agreements of WTO, for which India is being charged as violator?
Analysis
What is the complaint against India?
What is India’s stand?
Way forward
The WTO Appellate Body’s decision will be considered final on the dispute. In case India refuses to comply with the decision, it might have to face retaliatory action from other countries. This could be in the form of additional tariffs on Indian exports and other stringent measures.
Such retaliatory measures may benefit producers in these countries but affect consumers who have enjoyed lower sugar prices due to subsidies offered by India.
Verifying, please be patient.