US senators have raised objections to the subsidies provided by India for wheat, rice, and sugarcane. During a congressional hearing on trade, US Trade Representative (USTR) Katherine Tai defended the actions taken by the Biden administration and highlighted the improved market access to India. The concerns raised by the senators highlight the ongoing trade issues between the two countries. In a submission to the World Trade Organization (WTO), the US and Australia claimed that India provided sugarcane subsidies between 91-100% over the period 2018-19 to 2021-22, which greatly exceeded the 10% limit set by the WTO. The two countries also stated that India has not included sugarcane or its derived products in any of its domestic support notifications since 1995-96. In 2019, the US and Australia had previously taken India to the WTO's dispute settlement mechanism, alleging that New Delhi's sugar subsidies are inconsistent with global trade rules. A WTO panel confirmed these claims in 2021, but India appealed the findings. [78459a36] [23243ad1]
India's farm input subsidies, including sops for fertilizers, electricity, and irrigation, have increased sharply by 50% to $48.13 billion in 2022-23 from $32.07 billion in the previous fiscal year. The increase is attributed to inflation and rising costs of fertilizers. The US has pointed out that India's input subsidies were more than twice the value of all trade-distorting support notified by the US in 2021-22. New Zealand, Canada, and the US have expressed dissatisfaction with India's explanation and called for greater transparency. However, India opposes discussions around capping input subsidies, arguing that it is vital for the food and livelihood security of marginal farmers and rural development. [a8d8d658]
WTO members, including the US and UK, have raised questions about India's $48 billion farm input subsidies for 2022-23, which have been attributed to inflation and rising fertilizer costs. India explained that these subsidies are mainly for power, irrigation, and fertilizers and that the information had been duly notified to the WTO. The US claimed that this amount is more than twice the value of all trade-distorting support notified by India in 2021-22. [5feafab3]