➦ Recently in WTO (World Trade Organization) India was defeated the legal disputes against 2 or more countries. This dispute was on the subsidies given by the Indian government on the Sugarcane farmers in India.
➦ Actually the Indian Government had fixed some prices called FRP (Fair And Remunerative Price) on the product of sugarcane in India. The price is fixed every year by the central government and all the sugar factories have direction from the central government that they have to purchase the Sugarcane from farmers more than that price or not less than that price. Yeah sometime it possible that there is large production of sugarcane in market and that is price must be decreased but the government had strictly ordered that they have to put their price more than and equal to FRP, if any sugar factory will find in loss than that upper price will be given by the Indian Government.
➦ Well Indian government called it FRP but in real time situation it is a subsidy given to the farmers of sugarcane on their products. In the year of 2010-11 that FRP was 1391 Rupees/Ton and now in present time in the month of august 2021 that FRP was reach at a price of 2900 Rupees/Ton. After seeing that most of the farmers in India is preferring the farming of the Sugarcane as they know that they will get their actual price of product.
➦ After that in India there was a large production were taken place of sugarcane and that is why India is not able to fulfill the demand of Sugar in the market and so that Indian Government had ordered the Sugar mills to export their sugarcane in global markets as well. After that in Global Market there was a large supply of Sugarcane and Sugar and that is only due to Indian Market and Indian Farmers and as result of that In global Market the price of Sugar and Sugarcane was decreased by 20 % in few years.
➦ Well due to these many of countries like Australia and Brazil along with many other countries had facing losses in their farming sector and on behalf of that farmers of that particular countries also facing issues and losses in their income. To avoiding this situation Brazil and Australia along with many other countries reach to the WTO to put a petition against India as India is a 5th largest economy of the world and they can provide a subsidy but the countries like Australia, Brazil and all can't do that.
➦ WTO's Dispute Panel had worked on it and ordered the Indian government on 14th December 2021 that they have to take away their subsidies from the sugarcane in next 120 days and have to clear out this issue as due to that global market is affecting a lot and also told that they have to follow the WTO's Trade reforms and have to go with that.
➦ But now the details are coming from The Economics Time That India had denied to obey the orders of WTO and told that they can't take its subsidy providing on the sugarcane products.
➦ India has released a statement as a justification of their denies, It tells that the decision was taken by the dispute panel of the WTO is without any logic and against the rules of WTO's trade panel. India will not going to obey the decision and it will continue the subsidy given by the government. For that India had put its petition in Appealed Body of WTO and for your knowledge let me tell you that the decision will taken by Appealed Body is going to be final and if it'll against the India then India have to reforms in their Subsidy and have to follow the rules provided by the WTO Appealed Body.