Both Brazil and Australia have intensified their sugar related dispute with India by formally asking World Trade Organisation (WTO) to set up a panel to probe subsidies enjoyed by Indian cane growers which is breaching obligations.
Indonesia is to impose import tax for Indian raw sugar to 5% from the previously US$38.9/tonne, according to a finance ministry regulation published on 27th June, reported Reuters.
Indian sugar mills have contracted to export 3 million tonnes of sugar since the current marketing season began on Oct. 1, reported Reuters.
India is set to close in on the highest ever ethanol blend in gasoline of 7.2% in the current season (December 2018 – November 2019), according to local press reports.
Indian sugar mills have contracted to export 2.2 million tonnes of sugar since the current marketing season began on October 1, according to the president of the All India Sugar Trade Association Praful Vithalani, reported Reuters.
Measures taken by the Indian government in 2018 to boost ethanol production in the country are already resulting in an increase in contracted supply volumes, according to local press reports.
The Indian government’s Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi on 28th February approved a soft loan of up to INR105.4 billion (US$1.5 billion) for the sugar industry to help mills clear outstanding dues to cane farmers, according to local press reports.
WTO – Australia and Brazil launch formal complaint against India’s support for its sugar industry [Full subscriber]
The Australian Government, together with Brazil, has launched formal dispute action in the World Trade Organization (WTO) on India’s alleged sugar subsidies which has driven production and added to the global glut which has served to depress world prices and impacting their industries.
Iran is set to import 150,000 tonnes raw sugar to India for March and April delivery, as it seeks to bypass US sanctions by paying in Indian rupees which it has accumulated through exports of crude oil to India, according to five trade sources, reported Reuters.
On the back of the government initiative to drive biofuels production in the country, sugar mills have lined up fresh investment to the tune of INR 60 billion (US$840 million) to upgrade for producing ethanol from sugarcane, according to local press reports.