WT/DS581/1, G/AG/GEN/153  
G/SCM/D125/1, G/L/1302  
 
25 March 2019  
(19-1823) Page: 1/20 
  Original: English  
 
INDIA – MEASURES CON CERNING SUGAR AND SU GARCANE  
REQUEST FOR CONSULTA TIONS BY GUATEMALA  
The following communication,  dated 15 March 2019, from the delegation of Guatemala to the 
delegation of India, is circulated to the Dispute Settlement Body in accordance with Article 4.4 of 
the DSU.  
 
_______________  
 
 
My authorities have instructed me to request consultations with th e Government of India pursuant 
to Article 4 of the Understanding on rules and procedures governing the settlement of disputes 
("DSU"), Article 19 of the Agreement on Agriculture, Articles 4 and 30 of the Agreement on Subsidies 
and Countervailing Measures ( "SCM Agreement"), and Article XXII of the General Agreement on 
Tariffs and Trade 1994 ("GATT 1994") with respect to:  (a) domestic support measures maintained 
by India in favour of producers of sugarcane and sugar, and (b) export subsidies for sugarcane and  
sugar.  
I. Introduction  
India maintains various domestic support measures in favour of sugarcane producers and sugar 
producers , such as: (i) a system of administered prices for sugar cane which operates at the federal 
level through the Fair and Remunerative Price ("FRP") and, in the case of certain states, at the state 
level through the State Advised Price ("SAP"); (ii) a minimum selling price for sugar; and (iii) 
additional measures that provide financial assistance to sugarcane producers which include 
produ ction subsidies provided to sugar mills to offset sugarcane price arrears, soft loans provided to 
sugar mills to offset sugarcane price arrears, and subsidies to maintain buffer stocks.  
India did not schedule domestic support reduction commitments in Secti on I of Part IV of its Schedule 
of Concessions. Article 7.2(b) of the Agreement on Agriculture states that "[w]here no Total AMS 
commitment exists in Part IV of a Member's Schedule, the Member shall not provide support to 
agricultural producers in excess o f the relevant de minimis  level set out in paragraph 4 of Article 6". 
According to Article 6.4(b), the de minimis  level for developing countries, such as India, is 10 per 
cent of the total value of production for the basic agricultural product in question.  Guatemala 
considers that India's domestic support measures, as described in section II of this request, are 
inconsistent with India's obligations under Articles 3.2, 6.3, and Article 7.2(b) of the Agreement on 
Agriculture as they exceed the de minimis  level of 10 per cent provided for in Article 6.4(b) of the 
Agreement on Agriculture.  
In addition to domestic support measures, India provides export subsidies for sugarcane and sugar  
which take the form of subsidies provided to sugar mills contingent on  compliance with minimum 
indicative export quotas ("MIEQs"), as well as subsidies to sugar mills for internal transport, freight, 
handling and other charges to facilitate export freight support for exports.  
India did not schedule export subsidy reduction commitments in Section II of Part IV of its Schedule 
of Concessions. India, therefore, may not provide export subsidies to sugarcane or sugar. Guatemala 
considers that India's measures described in section III  of this request are thus inconsistent with 
India's obligations under Articles 3.3, 8, 9.1, and 10.1 of the Agree ment on Agriculture and Article  3 
of the SCM Agreement.  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  II. Domestic support measures in favour of producers of sugarcane and sugar  
Pursuant to Art icle 4.4 of the DSU, Guatemala identifies below the measures through which India 
provides domestic support in favour of producers of sugarcane and sugar, and which are subject to 
this request for consultations. The measures at issue include the following, as well as any 
amendments, related, successor, replacement or implementing measures thereto:  
1. Federal -level domestic support for sugarcane in the form of a federal administered price, the 
"Fair and Remunerative Price" ("FRP"),  which is fixed by the Federal Government and paid by 
sugar mills to sugarcane farmers as reflected in, but not limited to, the instruments and 
documents identified in paragraph 1 of Annex A to this request.  
2. State -level domestic support for sugarcane in the form of a state administered price, the "State 
Advised Price" ("SAP") , which is fixed by some Indian States and paid by sugar mills located in 
that State to sugarcane farmers in that State as reflected in, but not limited to, the instruments 
and documents identified in paragraph 2 of Annex A to this request.  
3. Federal -level domestic support for sugarcane in the form of a minimum mandatory selling price 
for sugar  that Indian sugar mills are required to charge for the sale of sugar in India as reflected 
in, but not limited to, the instrume nts and documents identified in paragrap h 3 of Annex A to 
this request.  
4. Federal -level domestic support for sugarcane, in the form of production -based assistance to 
offset sugarcane price arrears , involving budgetary outlays and/or other measures to support  
the production of, and the set of prices for, sugarcane and sugar, as a result of, but not limited 
to, the instruments and documents identified in paragraph 4 of Annex A to this request.  
5. Federal -level programs and measures making available subsidised loan s to offset sugarcane 
price arrears  to support the production of, and the set of prices for, sugarcane and sugar, as a 
result of, but not limited to, the instruments and documents identified in paragraph 5 of Annex 
A to this request.  
6. Federal and state -level measures providing financial assistance towards the maintenance of 
stocks for sugar , including budgetary outlays and/or other measures to offset cost of sugarcane 
and support sugarcane price, as reflected in but not limited to, the instruments and docume nts 
identified in paragraph 6 of Annex A to this request.  
7. Other state -level domestic support for sugarcane and sugar including assistance subsidies, 
production subsidies, low -interest loans, and exemption of purchase taxes as reflected in, but 
not limited  to, the instruments and documents identified in paragraph 7 of Annex A to this 
request.  
III. Export Subsidies for Sugar and Sugarcane  
Pursuant to Article 4.4 of the DSU, Guatemala identifies below the measures through which India 
provides export subsidies for sugarcane and sugar, and which are subject to this request for 
consultations. The measures at issue include the following, as well as any amendments, related, 
successor, replacement or implementing measures thereto:  
8. Federal -level measures whi ch provide subsidies to sugarcane and sugar producers contingent 
upon export performance,  including, but not limited to, the instruments identified in paragraph 
8 of Annex A to this request.  
9. State -level export subsidies for sugarcane and sugar, which make  the provision of financial 
support to sugar mills contingent upon export performance including, but not limited to, the 
instruments and subsidies identified in paragraph 9 of Annex A to this request.  
10. Federal -level assistance and export incentives , includi ng but not limited to the instruments 
identified in paragraph 10 of Annex A to this request.  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  11. Freight assistance , including under the Sugar Development Fund (SDF) Rules rule 20A,1 as well 
as but not limited to the instruments identified in paragraph 11 of Annex A to this request.  
IV. Legal basis for Guatemala's complaint  
Guatemala considers that the measures identified in paragraphs 1 – 7 above and in paragraphs 1 – 
7 of Annex A, appea r to be inconsistent with Articles 3.2, 6.3 and 7.2(b) of the Agreement on 
Agriculture because they provide product -specific domestic support  for sugarcane in excess of the 
10 per cent de minimis  level. Guatemala notes that India did not schedule domestic support 
reduction commitments in Section I of Part IV of its Schedule of Concessions and, therefore, pursuant 
to Article 6.4 of the Agreement on Agriculture, India's domestic support measures may not exceed 
the 10 per cent de minimis level.  
Guatemala consi ders that the measures identified in paragraphs 8 – 11 above and in paragraphs 8 
– 11 of Annex A, provide export subsidies  that appear to be inconsistent with Articles 3.3, 8, 9.1, 
and 10.1 of the Agreement on Agriculture. Guatemala notes that India did no t schedule export 
subsidy reduction commitments in Section II of Part IV of its Schedule of Concessions. Accordingly, 
India may not provide export subsidies for sugar or sugarcane. The measures identified in 
paragraphs 8 – 11 above constitute export subsid ies that also appear to be inconsistent with India's 
obligations under Article 3 of the SCM Agreement. Pursuant to Article 4.2 of the SCM Agreement, 
Guatemala presents a statement of available evidence in Annex B to this request.  
Guatemala reserves the rig ht to raise additional claims and measures, and to address additional 
legal and factual issues under the provisions of the covered agreements during the course of the 
consultations.  
Guatemala looks forward to receiving India's reply to the present request to fix a mutually convenient 
date for consultations, with a view toward resolving this dispute.  
  
                                                
1 Reflected in Ministry of Consumer Affairs, Food and Public Distribution, Department of Food & Public 
Distribution, Sugar Development Fund (Second Amendment) Rules 2007, Notification G.S.R. 697(E) of 
7 November 2007.  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  ANNEX A  
LIST OF INSTRUMENTS AND DOCUMENTS CONTAINING  
THE MEASURES AT ISSUE  
1. Federal -level domestic support for sugarcane in the form of a federal administered price, the 
"Fair and Remunerative Price" ("FRP"),  which is fixed by the Federal Government and paid 
by sugar mills to sugarcane farmers as reflected in, but not limited to, the following 
instruments and documents:  
a) Sections 3 and 7 of the Essential Commodities Act , 1955, as amended;  
b) Sections 3, 3A, 4, 4A, 5 and 11 of the Sugarcane (Control) Order , 1966, as amended;  
c) Communications fixing the FRP for sugarcane, including but not limited to:  
i. Ministry of Consumer Affairs, Food & Public Distribution, Communication 
"Cabinet approves determination of Fair and Remunerative Price payable by 
Sugar Mills for 2018 -2019 sugar Season" of 18 July 2018 announcing the FRP 
for sugarcane to be paid by sugar m ills for sugar season 2018 -2019;2 
ii. Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution, Communication No. 3(3)/2016 -SP.II of 1 June 2017 , 
announcing the FRP for sugarcane to be paid by sugar mills for sugar sea son 
2017-2018;  
iii. Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution, Communication No. 3(7)/2015 -SP.I of 12 April 2016 , 
announcing the FRP for sugarcane to be paid by sugar mills for sugar season 
2016-2017;  
iv. Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution, Communication No. 3(1)/2014 -SP.II of 2 February 2015 , 
announcing the FRP for sugarcane to be paid by sugar mills for sugar season 
2015-2016;  
v. Ministry of Con sumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution, Communication No. 3(3)/2013 -SP.II of 14 February 2014 , 
announcing the FRP for sugarcane to be paid by sugar mills for sugar season 
2014-2015; and  
vi. All other federal govern ment communications, instruments, documents, 
successor instruments and documents, and any amendments thereto that 
provide for a FRP for sugarcane for sugar seasons 2014 -2015, 2015 -2016, 2016 -
2017; 2017 -2018, 2018 -2019 and subsequent sugar seasons.  
d) All Noti fications fixing the FRP to be paid for sugarcane on a mill -specific basis, 
including but not limited to:  
i. Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution, Notification G.S.R. 1205(E)  of 27 September 2017 , fixing the 
FRP for sugarcane on a mill -specific basis for sugar season 2016 -2017;  
                                                
2 See Press Information Bureau, Government of India, Cabinet Committee on Economic Affairs, "Cabinet 
approves comprehensive policy to deal with excess sugar production in the cou ntry", 26 September 2018, 
available at http://www.pib.nic.in/Pressreleaseshare.aspx?PRID=1539078 , (last visited 11 March 2019).  
 WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  ii. Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution, Notification G.S.R. 1204(E)  of 27 September 2017 , fixing the 
FRP for suga rcane on a mill -specific basis for sugar season 2015 -2016;  
iii. Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution, Notification G.S.R. 142(E) of 17 February 2017 , fixing the 
FRP for sugarcane on a mill -specific basis for sugar season 2015 -2016;  
iv. Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution, Notification G.S.R. 932(E) of 30 September 2016 , fixing the 
FRP for sugarcane on a mill -specific basis for sugar season 2 015-2016;  
v. Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution Notification G.S.R. 195(E) of 28 February 2018 , fixing the FRP 
for sugarcane on a mill -specific basis for sugar season 2014 -2015;  
vi. Ministry of Con sumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution, Notification G.S.R. 752(E) of 1 October 2015 , fixing the FRP 
for sugarcane on a mill -specific basis for sugar season 2014 -2015; and  
vii. All other Notifications and other instr uments or documents, including successor 
instruments and documents, and any amendments thereto, fixing the FRP for 
sugarcane on a mill -specific basis for sugar seasons 2014 -2015, 2015 -2016, 
2016-2017, 2017 -2018, 2018 -2019 and subsequent sugar seasons.  
2. State-level domestic support for sugarcane in the form of a state administered price, the 
"State Advised Price" ("SAP") , which is fixed by some Indian States and paid by sugar mills 
located in that State to sugarcane farmers in that State as reflected in, but not limited to, 
the following instruments and documents:  
a) Andhra Pradesh:  
i. The SAP for Andhra Pradesh for sugar season 2016 -2017;3 
ii. The SAP for Andhra Pradesh for sugar season 2015 -2016;4 and 
iii. The SAP for Andhra Pradesh for sugar season 2014 -2015.5 
b) Bihar:  
i. The Bihar Sugarcane  (Regulation of Supply and Purchase) Act , 1981, as 
amended;  
ii. The State Advised Price in Bihar for sugar season 2017 -2018;6  
iii. The State Advised Price in Bihar for sugar season 2016 -2017;7 
                                                
3 See Commission for Agricultural Costs and Prices (C ACP), Department of Agriculture, Cooperation and 
Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Government of India, Price Policy for Sugarcane 
2018-2019 sugar season of August 2017, available at:  
 http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=41&KeyId=622 , p. 57 (last visited 
28 February 2019).  
4 Ibid.  
5 Ibid.  
6 See Commission for Agricultural Costs and Prices (CACP),  Department of Agriculture, Cooperation and 
Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Government of India, Price Policy for Sugarcane 
2018-2019 sugar season of August 2017, available at:  
http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=41&KeyId=622 , p. 57 (last 
visited 11 March 2019).  
7 Ibid.  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  iv. The State Advised Price in Bihar for sugar season 20 15-2016;8 and  
v. The State Advised Price in Bihar for sugar season 2014 -2015.9  
c) Gujarat: all State -level legal or administrative instruments, acts or otherwise of the 
State of Gujarat that provide, regulate or amend SAPs for sugarcane that are higher 
than th e FRP for sugarcane during sugar seasons 2014 -2015, 2015 -2016, 2016 -
2017, 2017 -2018, 2018 -2019 and subsequent sugar seasons.  
d) Haryana:  
i. The Punjab Sugarcane (Regulation of Purchase and Supply) Act , 1953, as 
amended, as it applies to the State of Haryana;  
ii. The Haryana Sugarcane (Regulation of Supply and Purchase) Rules , 1992, as 
amended;  
iii. The State Advised Price in Haryana for sugar season 2018 -2019;10 
iv. The State Advised Price in Haryana for sugar season 2017 -2018;11 
v. The State Advised Price in Haryana for sugar season 2016 -2017;12 
vi. The State Advised Price in Haryana for sugar season 2015 -2016;13 and 
vii. The State Advised Price in Haryana for sugar season 2014 -2015.14 
e) Karnataka:  
i. The Karnataka Sugarcane (Regulation of Purchase and Supply) Act , 2013, as 
amended; and  
ii. All State -level legal or administrative instruments, acts or otherwise of the State 
of Karnataka that provide, regulate or amend SAPs for sugarcane that are higher 
than the FRP for sugarcane during sugar seasons 2014 -2015, 2015 -2016, 2016 -
2017, 2017 -2018, 2 018-2019 and subsequent sugar seasons.  
f) Madhya Pradesh: all State -level legal or administrative instruments, acts or 
otherwise of the State of Madhya Pradesh that provide, regulate or amend SAPs for 
sugarcane that are higher than the FRP for sugarcane durin g sugar seasons 2014 -
2015, 2015 -2016, 2016 -2017, 2017 -2018, 2018 -2019 and subsequent sugar 
seasons.  
g) Maharashtra:  
i. The Essential Commodities (Maharashtra Amendment) Act , 1975, as amended;  
                                                
8 Ibid. 
9 Ibid.  
10 See "Haryana Government raises the price by ten rupees pe r quintal on all varieties of sugarcane", 
Patrika, 28 December 2018, available at https://www.patrika.com/bhiwani -news/raise d-the-price-per-quintal -
on-all-varieties -of-sugarcane -in-haryana -3896824/  (last visited 1 March 2019).  
11 See "Sugar mills start crushing sugarcane", Haryanaabtak 3 November 2017, available at 
http://haryanaabtak.com/featured/palwal -haryana -03-november -report/  (last visited 11 March 2019).  
12 See Commission for Agricultural Costs and Prices (CACP), Department of Agriculture, Cooperation and 
Farmers Welfare, Ministry of Agricul ture and Farmers Welfare, Government of India, Price Policy for Sugarcane 
2018-2019 sugar season of August 2017, available at:  
http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=41&KeyId=622 , p. 57 (last 
visited 11 March 2019) . 
13 Ibid.  
14 Ibid. WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  ii. The Maharashtra Regulation of Sugarcane Price (Supplied to Factories) Act, 
2013, as amended; and  
iii. All State -level legal or administrative instruments, acts or otherwise of the State 
of Maharashtra that provide, regulate or amend SAPs for sugarcane that are 
higher than the FRP for sugarcane during sugar seasons 2014 -2015, 2015 -2016, 
2016-2017, 2017 -2018, 2018 -2019 and subsequent sugar seasons.  
h) Punjab:  
i. The Punjab Sugarcane (Regulation of Purchase and Supply) Act , 1953, as 
amended;  
ii. The Punjab Sugarcane (Regulation of Purchase and Supply) Rules , 1958, as 
amended;  
iii. The State Advised Price in Punjab for the 2016 -2017 season;15 
iv. The State Advised Price in Punjab for the 2015 -2016 season;16 and 
v. The State Advised Price in Punjab for the 2014 -2015 season.17 
i) Tamil Nadu:  
i. The Tamil Nadu Sugarcane (Regulation of Purchase Price) Act , 2018;  
ii. Department of the Government of Tamil Nadu, Agriculture (S1) Department, 
Order G.O.(Ms). No. 228 of 11 September 2018 , providing the date of entry into 
force of the Tamil Nadu Sugarcane (Regulation of Purchase Price) Act, 2018;  
iii. Department of the Government  of Tamil Nadu, Agriculture (S1) Department, 
Order G.O.(Ms). No. 20 of 5 January 2017 , announcing the State Advised Price 
for sugarcane to be paid by sugar mills in Tamil Nadu for sugar season 2016 -
2017;  
iv. Department of the Government of Tamil Nadu, Agricult ure (S1) Department, 
Order G.O.(Ms). No. 20 of 11 January 2016 , announcing the State Advised Price 
for sugarcane to be paid by sugar mills in Tamil Nadu for sugar season 2015 -
2016; and  
v. Department of the Government of Tamil Nadu, Agriculture (S1) Department , 
Order G.O.(Ms). No. 15 of 14 January 2015 , announcing the State Advised Price 
for sugarcane to be paid by sugar mills in Tamil Nadu for sugar season 2014 -
2015.  
j) Telangana:  
i. The State Advised Price in Telangana for the 2015 -2016 season;18 and 
                                                
15 See Commission for Agricultural Costs and Prices (CACP), Department of Agriculture, Cooperation and 
Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Government of India, Price Policy for Sugarcane 
2018-2019 sugar season of August 2017, availa ble at:  
http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=41&KeyId=622 , p. 57 (last 
visited 11 March 2019) . 
16 Ibid. 
17 Ibid. 
18 See Commis sion for Agricultural Costs and Prices (CACP), Department of Agriculture, Cooperation and 
Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Government of India, Price Policy for Sugarcane 
2018-2019 sugar season of August 2017, available at:  
http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=41&KeyId=622 , p. 58 (last 
visited 11 March 2019) . WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  ii. The State Advi sed Price in Telangana for the 2014 -2015 season.19 
k) Uttrarakhand:  
i. The State Advised Price in Uttarakhand for sugar season 2018 -2019;20 
ii. The State Advised Price in Uttarakhand for sugar season 2017 -2018;21 
iii. The State Advised Price in Uttarakhand for sugar season 2016-2017;22 
iv. The State Advised Price in Uttarakhand for sugar season 2015 -2016;23 and 
v. The State Advised Price in Uttarakhand for sugar season 2014 -2015.24 
l) Uttar Pradesh:  
i. The Uttar Pradesh Sugarcane (Regulation of Supply & Purchase) Act , 1953, as 
amended;  
ii. The State Advised Price in Uttar Pradesh for the 2018 -2019 season;25 
iii. Government of Uttar Pradesh, Sugar Industry Section -3, Notification 
No. 2489/46 -3-17-3(48)/98 -99 of  26 October 2017 , establishing a SAP for the 
sugar season 2017 -2018;  
iv. The State Advised Pr ice in Uttar Pradesh for sugar season 2016 -2017;26 
v. The State Advised Price in Uttar Pradesh for sugar season 2015 -2016;27 and 
vi. The State Advised Price in Uttar Pradesh for sugar season 2014 -2015.28 
vii. All State -level legal or administrative instruments, acts, or otherwise of the 
above -mentioned Indian States or of any other Indian State that provide, 
regulate or amend SAPs for sugarcane that are higher than the FRP for 
sugarcane during sugar seasons 2014 -2015, 2015 -2016, 2016 -2017, 2017 -
2018, 2018 -2019 and subsequ ent sugar seasons.  
                                                
19 Ibid. 
20 See "Good news for farmers, s ugarcane can be sold at Rs 327 per quintal in 2018 -19", Amarujala, 21 
December 2018, available at https://www.amarujala.com/dehradun/sugarcane -purchase -price-increased -in-
uttarakhand -for-farmers  (last visited 1 March 2019).  
21 Ibid. 
22 See Commission for Agricultural Costs and Prices (CACP), Department of Agriculture, Cooperation and 
Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Gov ernment of India, Price Policy for Sugarcane 
2018-19 sugar season of August 2017, available at:  
 http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId =1&PageId=41&KeyId=622 , p. 58 (last 
visited 11 March 2019) . 
23 Ibid.  
24 Ibid.  
25 See "UP govt decides not to raise cane price; SAP stays at Rs 315 a quintal", Business Standard, 30 
November 2018, available at https://www.business -standard.com/article/economy -policy/up -govt-decides -not-
to-raise-cane-price-sap-stays-at-rs-315-a-quintal -118113000853_1 .html (last visited 11 March 2019).  
26 See Commission for Agricultural Costs and Prices (CACP), Department of Agriculture, Cooperation and 
Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Government of India, Price Policy for Sugarcane 
2018-2019 sugar season of August 2017, available at:  
http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=41&KeyId=622 , p. 58 (last 
visited 11 Marc h 2019) . 
27 Ibid.  
28 Ibid.  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  3. Federal -level domestic support for sugarcane in the form of a minimum mandatory selling 
price for sugar  that Indian sugar mills are required to charge for the sale of sugar in India 
as reflected in, but not limited to, the following instruments and documents:  
a) Section 3 of the Essential Commodities Act , 1955, as amended;  
b) Sugar Price (Control) Order,  1966, as amended;  
c) Sections 3 and 7 of the Sugar Price (Control) Order , 2018, as amended;  
d) All instruments, acts or otherwise that  fix a minimum price for the sale of sugar in 
India, including, but not limited to:  
i. Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution, Order S.O.874(E) of 14 February 2019 , fixing a minimum 
selling price for  sugar; and  
ii. Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution, Order S.O.2346(E) of 7 June 2018,  fixing a minimum selling 
price for sugar.  
e) All instruments, acts, or otherwise that provide, regulate or amend  a minimum 
selling price for sugar for sugar seasons 2014 -2015, 2015 -2016, 2016 -2017, 2017 -
2018, 2018 -2019 and subsequent sugar seasons.  
4. Federal -level domestic support for sugarcane, in the form of production -based assistance to 
offset sugarcane price arre ars, involving budgetary outlays and/or other measures to 
support the production of, and the set of prices for, sugarcane and sugar, as a result of, but 
not limited to, but not limited to, the following instruments and documents:  
a) "Scheme for Assistance to  Sugar Mills" for the 2018 -2019 sugar season, Notification 
No. 1(14)/2018 -S.P.-I of the Ministry of Consumer Affairs, Food & Public 
Distribution, Department of Food & Public Distribution of 5 October 2018;  
b) "Scheme for Assistance to Sugar Mills" for the 201 7-2018 sugar season (INR 55/ton 
(INR 5.5/qtl), Notification No. 1(5)/2018 -S.P.-I of the Ministry of Consumer Affairs, 
Food & Public Distribution, Department of Food & Public Distribution of 9 May 2018, 
and Notification No. 1(5)/2018 -S.P.-I of 16 August 201 8;29 
c) Production subsidy for the 2016 -2017 sugar season to sugar mills to offset cost of 
cane and support cane price;30 
d) Production Subsidy Scheme for the 2015 -2016 sugar season, Notification 
No. 20(43)/2015 -S.P.-1 of the Ministry of Consumer Affairs, Food & P ublic 
Distribution, Department of Food & Public Distribution, of 2 December 2015, 
                                                
29 Reflected in Ministry of Consumer Affairs Press Release, ''Sugar Industry', 31 July 2018: "Provided 
Assistance to sugar mills @Rs.5.50/quintal of cane crushed for sugar season 2017 -18 to offset the cost of cane 
amounting to about Rs.1540 crore".  
30 Reflect ed in Ministry of Consumer Affairs, Food and Public Distribution, Budget allocation to 31 March 
2016, "Production Subsidy to Sugar Mills to offset cost of cane and facilitate timely payment of cane price dues 
of farmers. (Subsidy) (New Scheme) Financial Ye ar 2016 -17: Budget Estimates [INR] 950.01 [in crores]"; 
Ministry of Consumer Affairs, Food and Public Distribution, Notes on Demands for Grants 2016 -17, Demand No. 
17, Budget 2016 -17, "Production Subsidy to Sugar Mills to offset cost of cane and facilitate  timely payment of 
cane price dues of farmers, Plan: 950.01 [in crores of Rupees]", under Major Head 2408; and Outcome Budget 
2016-17, Department of Food and Public Distribution, 6.10 "Production Subsidy to Sugar Mills to offset cost of 
cane and facilitate  timely payment of cane price dues of farmers, [INR] 950.01 [crore], "The production subsidy 
@ [INR] 4.5 per quintal of cane crushed will be provided for estimated 255 million MT of cane. This will help 
sugar mills to reduce the financial burden and help f armers to clear the cane dues in time", pp. 21, 110.  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  providing cash grants of INR 45/ton (INR 4.5/qtl) of cane crushed to pay farmers, 
via the Sugar Development Fund (SDF);31 
e) Production Subsidy Scheme for the 2014 -2015 sugar sea son providing cash grants 
to pay farmers paid directly to farmers on behalf of mills.  
f) All other instruments, successor instruments and any amendments thereto providing 
for production -based assistance to sugar or sugarcane for the 2014 -2015, 2015 -
2016, 201 6-2017 2017 -2018, 2018 -2019 seasons and subsequent seasons.  
5. Federal -level programs and measures making available subsidised loans to offset sugarcane 
price arrears  to support the production of, and the set of prices for, sugarcane and sugar, 
as a result of , but not limited to, the following instruments and documents:  
a) Federal -level Soft Loan for 2014 -2015, making loans available to sugar mills to 
facilitate clearance of cane price arrears and support the cane price, with subvention 
of interest by the Government of India up to 10 per cent, with a 1 -year 
moratorium,32 including through:  
i. Notification No. 1(5)/2015 -S.P. -I of the Ministry of Consumer Affairs, Food & 
Public Distribution, Department of Food & Public Distribution of 23 June 2015;  
ii. Notification No. 1(7)/2015 -S.P. -I of the Ministry of Consumer Affairs, Food and 
Public Distribution, Department of Food & Public Distribution of 1 August 2015;  
iii. Notification No. 1(7)/2015 -S.P. -I of the Ministry of Consumer Affairs, Food and 
Public Distribution, Depart ment of Food & Public Distribution of 5 October 2015;  
b) "Scheme for Extending Financial Assistance to Sugar Undertakings, 2014", 
Notification No. 20 -90/2013 -SP.-II of the Ministry of Consumer Affairs, Food & Public 
Distribution, Department of Food & Public D istribution of 3 January 2014;  
c) Any loans granted at subsidised rates under Sections 4 and 5 of the Sugar 
Development Fund Act, 1982, as amended, and the Sugar Development Fund Rules, 
1983, as amended.  
d) All other instruments, successor instruments and any am endment thereto at the 
federal level that provide for loans to sugar or sugarcane producers at subsidized 
rates to offset cane price arrears, for the 2014 -2015, 2015 -2016, 2016 -2017, 2017 -
2018, 2018 -2019 seasons and subsequent seasons.  
6. Federal and state -level measures providing financial assistance towards the maintenance of 
stocks for sugar , including budgetary outlays and/or other measures to offset cost of 
sugarcane and support sugarcane price, as reflected in but not limited to, the following 
instrument s and documents:  
                                                
31 Including disbursements made to September 2016 and beyond, referred to on Department of Food & 
Public Distribution web site, "Production subsidy: Since the production subsidy scheme was withdrawn befor e 
time, the Central Government has decided to disburse the performance based production subsidy for cane 
crushed during 2015 -16 sugar season till the tenancy of the scheme vide notification dated 12.09.2016. Under 
the scheme, so far Rs. 520 crores have bee n disbursed as production subsidy to 213 sugar mills…", available at 
https://dfpd.gov.in/sugar.htm  (last visited 11 March 2019). See also Notification 20(43)/2015 -S.P.-1 of the 
Ministry of Consumer Affairs, Foo d & Public Distribution, Department of Food & Public Distribution, of 19 May 
2016.  
32 Reflected in ''Direct subsidy to sugarcane growers', Cabinet Committee on Economic Affairs (CCEA) 
Press Release, 18 November 2015, "To further help the industry clear cane  dues arrears, the Government has 
disbursed soft loans to the extent of Rs. 4,047 crore. To ensure that farmers are paid their dues expeditiously, 
the financial assistance has been passed on directly to the cane growers by the banks after obtaining the lis t 
from the mills. Furthermore, the Government has provided one year moratorium on this loan, and will bear the 
interest subvention cost to the extent of Rs. 600 crore for the said period."  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  a) Sugar (Control) Order 1966, clause 5, directing quantities that may be held by 
dealers of sugar;  
b) Order F. No. 5 -1/2018 -Sugar Control of Ministry of Consumer Affairs, Food & Public 
Distribution of 31 January 2019;  
c) Notification No. 1(6)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public 
Distribution, Department of Food & Public Distribution of 31 December 2018 
notifying a change to the Scheme for Creation and Maintenance of Buffer Stock;  
d) Order F. No. 5 -1/2018 -Sugar Control of Minist ry of Consumer Affairs, Food & Public 
Distribution of 28 December 2018;  
e) Order F. No. 5 -1/2018 -Sugar Control of Ministry of Consumer Affairs, Food & Public 
Distribution of 30 November 2018;  
f) Order F. No. 5 -1/2018 -Sugar Control of Ministry of Consumer Affairs , Food & Public 
Distribution of 31 October 2018;  
g) Order F. No. 5 -1/2018 -Sugar Control of Ministry of Consumer Affairs, Food & Public 
Distribution of 28 September 2018;  
h) Order F. No. 5 -1/2018 -Sugar Control of Ministry of Consumer Affairs, Food & Public 
Distri bution of 31 August 2018;  
i) Order F. No. 5 -1/2018 -Sugar Control of Ministry of Consumer Affairs, Food & Public 
Distribution of 30 July 2018;  
j) Order of Ministry of Consumer Affairs, Food & Public Distribution of 29 June 2018, 
allocating of 30 Lakh MT (3 millio n metric tons) of buffer stock;  
k) Notification No. 1(6)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public 
Distribution, Department of Food & Public Distribution of 15 June 2018;  
l) Order F. No. 5 -1/2018 -Sugar Control of Ministry of Consumer Affairs, Food & Public 
Distribution of 7 June 2018;  
m) Order F. No. 1(2)/2018 -S.P.-1 Ministry of Consumer Affairs, Food & Public 
Distribution of 8 February 2018;  
n) Order G.S.R.1069(E), F. No. 1(6)/2016 -S.P.-1 of Ministry of Consumer Affairs, Food 
& Public Distribution o f 28 August 2017;  
o) Order S.O.3348(E) of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 28 October 2016;  
p) Order F. No. 1(6)/2016 -S.P.-1 of Ministry of Consumer Affairs, Food & Public 
Distribution of 8  September 2016;  
q) Order G.S.R. 471(E) of Ministry of Consumer Affairs, Food & Public Distribution of 
29 April 2016;  
r) Various forms of assistance subsidies, subsidised loans and other subsidies 
specifically provided to producers of sugarcane and sugar for the maintenance of 
buffer stocks by the Indian states of Andhra Pradesh, Bihar, Gujarat, Haryana, 
Karnataka, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu, Telangana, Uttar 
Pradesh, and Uttarakhand; and  
s) All other instruments, including all successor inst ruments and any amendments 
thereto, providing product -specific domestic support for sugarcane through non -WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  exempt direct payments or any other subsidy not exempted from reduction 
commitments whether provided by the federal government or any of the individua l 
states, for the 2014 -2015, 2015 -2016, 2016 -2017, 2017 -2018, 2018 -2019 seasons 
and subsequent seasons.  
7. Other state -level domestic support for sugarcane and sugar  including assistance subsidies, 
production subsidies, low -interest loans, and exemption of pu rchase taxes as reflected in, 
but not limited to, the following instruments and documents:  
a) Bihar:  
i. The Chief Ministers Sugarcane Development Scheme in the State of Bihar  which 
provides subsidies for the purchase and transportation of registered seed of 
sugarcane for sugar season 2017 -2018;  
ii. Department of Industrial Unit, Government of Bihar, Notification of 17 May 2018 , 
reducing the rate of commission to be paid by sugar mills on the purchase of 
sugarcane for sugar season 2017 -2018;  
iii. Department of Industrial U nit, Government of Bihar, Notification of 17 May 2018 , 
exempting sugar mills from payments of certain taxes for sugar season 2017 -
2018; and  
iv. Department of Industrial Unit, Government of Bihar, Notification of 2 August 
2017, reducing the rate of commission t o be paid by sugar mills on the purchase 
of sugarcane for sugar season 2016 -2017.  
b) Gujarat:  
i. Government of Gujarat, Scheme -1-180618 of the Sugar Regulatory Authority , 
providing for liquidity support to sugar cooperatives for sugar season 2018 -
2019;  
ii. Governmen t of Gujarat, Scheme -3-180618 of the Sugar Regulatory Authority , 
providing funds to sugar mills for sugar season 2018 -2019; and  
iii. Government of Gujarat, Scheme -4-180618 of the Sugar Regulatory Authority , 
providing for a liquidity support loan to sugar mills for sugar season 2018 -2019.  
c) Haryana: Haryana financial assistance (subsidy and soft loans) of INR 16 per 
quintal.33 
d) Maharashtra:  
i. Government of Maharashtra, Finance Department, Notification No. SCPT -
1117/CR -03/Taxation -3 of 19 April 2017 , exempting sugar fac tories from 
payments of certain taxes for sugar season 2016 -2017;  
ii. Government of Maharashtra, Department of Agriculture, Notification of 
16 November 2016 , providing for a soft loan scheme for sugarcane farmers in 
the State of Maharashtra;  
                                                
33 "State subsidies for farmers to improve mills' liquidity, clear c ane dues", Business Standard, 19 October 
2018, available at https://www.business -standard.com/article/ec onomy -policy/state -subsidies -to-improve -
mills-liquidity -clear-cane-dues-118101900698_1.html  (last visited 11 March 2019), and "State subsidies to 
improve mills' liquidity & clear cane dues: Report", Daily Pioneer, 20 October 2018, available at 
https://www.dailypioneer.com/2018/business/state -subsidies -to-improve -mills----liquidity ---clear-cane-dues-
report.html  (last visited 11 March 2019).  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  iii. Funds provided by  the State of Maharashtra in connection with drip and micro 
irrigation of sugarcane, including but not limited to:  
▪ Government of Maharashtra, Department of Agriculture, Notification of 
12 September 2018 ; 
▪ Government of Maharashtra, Department of Agriculture, Notification of 
31 July 2018 ; 
▪ Government of Maharashtra, Department of Agriculture, Notification of 
24 July 2017 ; and  
▪ Government of Maharashtra, Department of Agriculture, Notification of 
6 October 2016 . 
e) Tamil Nadu:  
i. Government of Tamil Nadu, Agriculture (S1) Department, Order G.O.(Ms). 
No.230 of 17 September 2018 , providing for payments to offset the difference 
between th e SAP and the federal FRP for sugar season 2017 -2018 season; and  
ii. Government of Tamil Nadu, Agriculture (S1) Department, Order G.O.(Ms). 
No.191  of 24 July 2018 , providing for payments to offset the difference between 
the SAP and the federal FRP for sugar se ason 2017 -2018.  
f) Uttar Pradesh:  
i. Government of Uttar Pradesh, Sugar Industrial Unit, Notification of 21 March 
2018, providing for funds for drip irrigation during the 2016 -2017 season;  
ii. Below -market loans to farmers in Uttar Pradesh, announced 26 September 
2018;34   
iii. Production subsidy for sugar mills in Uttar Pradesh of INR 4.5 per quintal.35 
iv. Government of Uttar Pradesh, Cane Development & Sugar Industry, Notification 
of 15 November 2017 , waiving the guarantee fee payable by certain sugar mills 
on government gua rantees;  
v. Government of Uttar Pradesh, Sugar Industrial Unit, Notification of 
24 September 2015 , providing for a scheme for easing dues on sugarcane 
farmers for sugar season 2014 -2015; and  
vi. Waiver of interest and/or penalties on late payment by millers to fa rmers for 
sugarcane.36 
vii. Any funds provided by Indian States and the Federal Government in relation to 
sugarcane under the Krishonnati Yojana Scheme;37 and 
                                                
34 See "Sweet & Sour: UP offers Rs 4000 crore loan, subsidy to clear cane dues", Financial Express, 
26 September 2018, available at https://www.financialexpress.com/industry/sweet -sour-up-offers -rs-4000-
crore-loan-subsidy -to-clear-cane-dues/1326772/  (last visited 11 March 2019).  
35 See "Sweet & Sour: UP offers Rs 4000 crore loan, subsidy to clear cane dues", Fin ancial Express, 26 
September 2018, available at https://www.financialexpress.com/industry/sweet -sour-up-offers -rs-4000-crore-
loan-subsidy -to-clear-cane-dues/1326772/  (last visited 11 March 2019).  
36 See "Akhilesh Yadav government waives sugarcane mill owners dues", The Indian Express, 4 October 
2016, available at:  
 https://indianexpress.com/article/india/india -newsindia/akhilesh -yadav -government -waives -sugarcane -mill-
owners -dues-3064292/   (last visited 11 March 2019).  
37 Including, but not limited to, the following: Notifications issued by the Department of Agricu lture, 
Government of Maharashtra dated 17.03.2016, 16.07.2016, 14.10.2016, 03.02.2017, 17.02.2017, 16.03.2017, WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  viii. All other Federal -level or State -level instruments, including all subsequent 
instruments, and any amendm ents thereto, providing product -specific domestic 
support for sugarcane through non -exempt direct payments or any other subsidy 
not exempted from reduction commitments whether provided by the Federal 
government or any of the individual States during sugar seasons 2014 -2015, 
2015-2016, 2016 -2017, 2017 -2018, 2018 -2019 and subsequent seasons.  
8. Federal -level measures which provide subsidies to sugarcane and sugar producers 
contingent upon export performance,  as reflected in, but not limited to, the following 
instruments:  
a) Minimum Indicative Export Quotas ("MIEQ") that operate in conjunction with the 
other measures identified in this paragraph to require mills to export certain 
quantities of sugar as a condition for the grant or maintenance of a subsidy. The 
instru ments establishing the MIEQ arrangements require that sugar mills which fail 
to export the MIEQ allocated to them shall be deemed to be violating the directives 
of the Government issued under clause 5 of the Sugar (Control) Order, 1966. 
Instruments establi shing or evidencing MIEQ arrangements include, but are not 
limited to, the following:  
i. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & 
Public Distribution, Department of Food & Public Distribution of 24 December 
2018;  
ii. Notificati on No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food and 
Public Distribution, Department of Food and Public Distribution, communication 
to sugar mills of 12 October 2018;  
iii. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & 
Public Distribution, Department of Food & Public Distribution of 28 September 
2018, which allocates factory -wise minimum indicative export quotas for the 
2018-2019 season;  
iv. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & 
Public  Distribution, Department of Food & Public Distribution of 23 September 
2018 concerning the allocation of minimum indicative export quotas for the 
2018-2019 season;  
v. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & 
Public Distribu tion, Department of Food & Public Distribution of 23 August 2018, 
which makes certain amendments to Notification No. 1(4)/2018 -SP-I of 9 May 
2018;  
vi. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & 
Public Distribution, Department o f Food & Public Distribution of 9 May 2018, 
which revises the allocation of minimum indicative export quotas for the 2017 -
2018 season;  
vii. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & 
Public Distribution, Department of Food & Public Distribution of 28 March 2018, 
which allocates factory -wise minimum indicative export quotas for the 2017 -
2018 season;  
                                                
30.03.2017, 06.05.2017, 26.09.2017, 26.10.2017, 27.10.2017, 09.11.2017, 15.11.2017, 12.02.2018, 
20.02.2018, 12.03.2018, 15.03.2018, 28.03.2018, 2 6.06.2018, 24.01.2018; Order dated 24.08.2016 by the 
Department of Agriculture, Government of Tamil Nadu. See also "Rs 33,000 crore boost to agriculture: Here's 
how Modi plans to double farmers' income by 2022", Financial Express, 3 May 2018, available at:  
https://www.financialexpress.com/economy/rs -33000 -crore-boost -to-agriculture -heres -how-modi-plans -to-
double -farmers -income -by-2022/1154180/  (last visited 11 March 2019).  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  viii. Cabinet Committee on Economic Affairs (CCEA) Press Release of 18 November 
2015;  
ix. Order F. No. 1(10)/2015 -SP-1 of Ministry of Consum er Affairs, Food and Public 
Distribution, Department of Food and Public Distribution, communication to 
sugar mills, of 18 September 2015;  
b) "Scheme for Assistance to Sugar Mills", reflected in:  
i. for the sugar season 2018 -2019, Notification No. 1(14)/2018 -S.P.-I of the 
Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & 
Public Distribution of 5 October 2018;  
ii. Notification No. 1(5)/2018 -S.P.-I of the Ministry of Consumer Affairs, Food & 
Public Distribution, Department of Food & Public D istribution of 16 August 2018;  
iii. for the season 2017 -2018, Notification No. 1(5)/2018 -S.P.-I of the Ministry of 
Consumer Affairs, Food & Public Distribution, Department of Food & Public 
Distribution of 9 May 2018;  
c) Production Subsidy Scheme for the sugar seas on 2015 -2016, Notification No. 
1(5)/2018 -S.P.-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution, providing cash grants of INR 45/ton (INR 
4.5/qtl) of cane crushed to pay farmers, via the Sugar Devel opment Fund (SDF), of 
2 December 2015;38 
d) "Scheme for Creation and Maintenance of Buffer Stock", reflected in:  
i. Notification No. 1(6)/2018 -SP-I of the Ministry of Consumer Affairs, Food & 
Public Distribution, Department of Food & Public Distribution of 31 Dec ember 
2018 notifying a change to the Scheme for Creation and Maintenance of Buffer 
Stock so that sugar mills must fully comply with directives, (including relating to 
the MIEQ);  
ii. Order No. 1(6)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public 
Distribution, Department of Food & Public Distribution, of 29 June 2018 
allocating 30 Lakh MT (3 million metric tons) of buffer stock;  
iii. Notification No. 1(6)/2018 -SP-I of the Ministry of Consumer Affairs, Food & 
Public Distribution, Department of Food & Publi c Distribution of 15 June 2018;  
e) Duty-free Import Authorisation (DFIA) for raw sugar imported in the 2019 –20 and 
2020–21 sugar seasons, for mills which have exported white/refined sugar during 
the 2017 –18 sugar season,39 reflected in:  
i. Notification No. 57/201 5-2020 of the Ministry of Commerce and Industry, 
Department of Commerce, Directorate General of Foreign Trade of 28 March 
2018;  
                                                
38 Reflected in Gazette of India Extraordinary Part -1, section -1, Notification No. 20( 43)/2015 -S.P.-1 
Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & Public Distribution dated 2 
December 2015; and including disbursements made to September 2016 and beyond, referred to on Department 
of Food & Public Distribution  web site, "Production subsidy: Since the production subsidy scheme was withdrawn 
before time, the Central Government has decided to disburse the performance based production subsidy for cane 
crushed during 2015 -16 sugar season till the tenancy of the sche me vide notification dated 12.09.2016. Under 
the scheme, so far Rs. 520 crores have been disbursed as production subsidy to 213 sugar mills…", available at 
https://dfpd.gov.in/sugar.htm  (last visited 11 March 2 019).  
39 Notification No. 57/2015 -2020 of the Ministry of Commerce and Industry, Department of Commerce, 
Directorate General of Foreign Trade of 28 March 2018, referring to SION SI.No - E52. WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  f) Federal - and State -level export subsidies related to the transportation of sugar 
including, but not limited to:  
i. Notification No . 1(14)/2018 -S.P.-I of the Ministry of Consumer Affairs, Food & 
Public Distribution, Department of Food & Public Distribution of 5 October 2018, 
providing for a transport subsidy for exports of sugar, as amended;  
ii. Circular No. TM/A/15 -22/33 of the Mumbai P ort Trust of 18 December 2018, 
providing for concessional rates for demurrage on exports of sugar;  
g) Low interest loans and grants to mills to pay the difference between the FRP and the 
SAP; 
h) All other instruments, including all successor instruments and any  amendments 
thereto, providing federal -level subsidies contingent on export performance to sugar 
mills.  
9. State -level export subsidies for sugar and sugarcane,  which make the provision of financial 
support to sugar mills contingent upon export performance in cluding, but not limited to, 
instruments which provide for:  
a) Any subsidies contingent on export provided to producers of sugarcane and sugar 
by the Indian states of Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Madhya 
Pradesh, Maharashtra, Punjab, Tamil Nadu, Telangana, Uttar Pradesh, and 
Uttarakhand; including production -based cash grants, interest waivers, share capital 
contribution, loans extended from state exchequer, default guarantee on loans, and 
deferral of purchase tax, debt restruc turing and exemption of exported sugar from 
local taxes and fees;40 
b) All other instruments, including all successor instruments and any amendments 
thereto, providing state -level subsidies contingent on export performance to sugar 
mills.  
10. Federal -level assista nce and export incentives , including under Sugar Rules / Sugar 
Development Fund (SDF) Rules rule 20B41 as amended (also referred to as the Raw Sugar 
Export Incentive Scheme),42 including, but not limited to the following:  
a) Sugar Development Fund (Amendment) R ules, 2015, Notification GSR 127 (E)., F. 
No. 20(90)/2013 -SP-I, Ministry of Consumer Affairs, Food & Public Distribution, of 
27 February 2015, amending Rule 20B of the Sugar Development Fund Rules 
1983;43 
b) Export Incentive of INR 4,000 per ton (approximately  21 per cent of the world raw 
sugar price) for an additional 1.4 million tons above earlier seasons (19 February 
2015);44 
c) Export Incentive of INR 3,371 per ton (August – September 2014);  
                                                
40 Similar to exported sugar exemption from local taxes and fees imp osed on domestic sugar to value of 
INR 950 per ton (2006 – 2008).  
41 Sugar Development Fund (Amendment) Rules, 2014, rule 20B, inserted 28 February 2014.  
42 Reflected in Ministry of Consumer Affairs, Food and Public Distribution, Department of Food and Publi c 
Distribution 'Sugar and Sugarcane Policy', "Provided financial assistance through 'raw sugar export incentive 
scheme' Rs. 425 crore was disbursed under the scheme", available at https://dfpd.gov.in/sugar -sugarcane -
policy.htm (last visited 11 March 2019) . 
43 Providing at sub -rule (4): "the incentive shall be at the rate of rupees three thousand three  hundred 
per metric tonne for April -May,2014, rupee three thousand three hundred per  metric tonne for June -July,2014, 
and rupees three thousand three hundred se venty one per  metric tonne for August -September,  2014 and the 
incentive shall be rupees four thousand  per metric tonne for the current sugar season 2014 -15(October, 2014 -
September, 2015)."  
44 Cabinet Committee on Economic Affairs (CCEA) Press Release, 18 No vember 2015.  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  d) Export Incentive of INR 2,277 per ton (April – May 2014);  
e) Export Incen tive of INR 3,300 per ton (3 March – 31 July 2014) (indicating eligibility 
would be contingent on production and export of sugar);45 
f) Sugar Development Fund (Amendment) Rules, 2014, Notification GSR 128 (E)., F. 
No. 20(90)/2013 -SP-I, Ministry of Consumer Aff airs, Food & Public Distribution, of 
28 February 2014, inserting rule 20B of the Sugar Development Fund Rules 1983;46  
g) All other instruments, including all successor instruments and any amendments 
thereto, providing for export incentives for sugar.  
11. Freight assistance , including under the Sugar Development Fund (SDF) Rules rule 20A,47 as 
well as but not limited to the following:  
a) Federal -level freight assistance, including the "Scheme for defraying expenditure 
towards internal transport, freight, handling and o ther charges on export", reflected 
in: 
i. Notification F. No. 1(14)/2018 -SP-I of Ministry of Consumer Affairs, Food and 
Public Distribution, Department of Food and Public Distribution of 5 October 
2018, providing INR 1,000/ton for mills located within 100 kil ometres (km) from 
ports; INR 2,500/ton for mills beyond 100km from the port in coastal states; 
and INR 3,000/ton for mills in other than coastal states or actual expenditure, 
whichever is lower. It appears this is to be credited directly to the farmers on 
behalf of mills, to support the cane price;48 
ii. Communication F. No. 1 -3/2018 -Trade of the Ministry of Consumer Affairs, Food 
and Public Distribution, Department of Foo d and Public Distribution of 
19 November 2018, clarifying notification F. No. 1(14)/2018 -SP-I of 5 October 
2018;  
b) State -level freight assistance, including state transportation payments for internal 
or international transport or freight, and measures in addition to federal SDF 
subsidy.49 
  
                                                
45 Cabinet Committee on Economic Affairs (CCEA) Press Release, 18 November 2015, "To  improve liquidity 
of sugar mills and facilitate payment of cane dues arrears, the Government  had increased the export incentive 
on raw sugar from Rs 3300/MT to Rs. 4000/MT in the  sugar season 2014 -15." 
46 Providing "the incentive shall be at the rate of Rupees three thousand three hundred per metric tonne 
for February and March, 2014 and, thereafter, be recalculated every two months after taking into ac count the 
average exchange rate of Rupee vis -à-vis USD…".  
47 Reflected in Ministry of Consumer Affairs, Food and Public Distribution,  Department of Food & Public 
Distribution, Sugar Development Fund (Second Amendment) Rules 2007, Notification  G.S.R. 697(E)  of 
7 November 2007.  
48 Referred to in ''Cabinet approves comprehensive policy to deal with excess sugar production in the 
country', Cabinet Committee of Economic Affairs (CCEA) Press Release, 26 September 2018.  
49 Similar to Government of Maharashtra Resolu tion No. SSK1007/C.R.194/25 -C, 27 July  2007.  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  ANNEX B  
STATEMENT OF AVAILABLE EVIDENCE UNDER  
ARTICLE 4.2 OF THE SCM AGREEMENT  
1. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 24 December 2018;  
2. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food and Public Distributio n, 
Department of Food and Public Distribution, communication to sugar mills of 12 October 2018;  
3. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 28 September 2018, which allocates factory -wise 
minimum indicative export quotas for the 2018 -2019 season;  
4. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 23 September 2018 concernin g the allocation of 
minimum indicative export quotas for the 2018 -2019 season;  
5. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 23 August 2018, which makes certain amendments 
to Notification No. 1(4)/2018 -SP-I of 9 May 2018;  
6. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 9 May 2018, which revises the allocation of minimum 
indicative export quotas for the 2017 -2018 season;  
7. Notification No. 1(4)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 28 March 2018, which allocates factory -wise 
minimum indicative exp ort quotas for the 2017 -2018 season;  
8. Cabinet Committee on Economic Affairs (CCEA) Press Release of 18 November 2015;  
9. Order F. No. 1(10)/2015 -SP-1 of Ministry of Consumer Affairs, Food and Public Distribution, 
Department of Food and Public Distribution, com munication to sugar mills, of 18 September 
2015;  
10. Notification No. 1(14)/2018 -S.P.-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 5 October 2018;  
11. Notification No. 1(5)/2018 -S.P.-I of the Minist ry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 16 August 2018;  
12. Notification No. 1(5)/2018 -S.P.-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 9  May 2018;  
13. Notification No. 1(5)/2018 -S.P.-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution, providing cash grants of INR 45/ton (INR 4.5/qtl) of 
cane crushed to pay farmers, via the Sugar Developm ent Fund (SDF), of 2 December 2015;50 
14. Notification No. 1(6)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 31 December 2018 notifying a change to the Scheme 
                                                
50 Reflected in Gazette of India Extraordinary Part -1, section -1, Notification No. 20(43)/2015 -S.P.-1 
Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & Public Distribution dated 2 
December 2015; and including disbursements made to September 2016 and beyond, referred to on Department 
of Food & Public Distribution web site, "Production subsidy: Since the production subsidy scheme was withdrawn 
before time, the Central Government has dec ided to disburse the performance based production subsidy for cane 
crushed during 2015 -16 sugar season till the tenancy of the scheme vide notification dated 12.09.2016. Under 
the scheme, so far Rs. 520 crores have been disbursed as production subsidy to 2 13 sugar mills…", available at 
https://dfpd.gov.in/sugar.htm  (last visited 11 March 2019).  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  for Creation and Maintenance  of Buffer Stock so that sugar mills must fully comply with 
directives, (including relating to the MIEQ);  
15. Order No. 1(6)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution, of 29 June 2018 al locating 30 Lakh MT (3 million 
metric tons) of buffer stock;  
16. Notification No. 1(6)/2018 -SP-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 15 June 2018;  
17. Notification No. 57/2015 -2020 of the Min istry of Commerce and Industry, Department of 
Commerce, Directorate General of Foreign Trade of 28 March 2018;  
18. Notification No. 1(14)/2018 -S.P.-I of the Ministry of Consumer Affairs, Food & Public Distribution, 
Department of Food & Public Distribution of 5  October 2018, providing for a transport subsidy 
for exports of sugar, as amended;  
19. Circular No. TM/A/15 -22/33 of the Mumbai Port Trust of 18 December 2018, providing for 
concessional rates for demurrage on exports of sugar;  
20. Sugar Development Fund (Amendm ent) Rules, 2015, No tification GSR 127 (E)., 
F. No. 20(90)/2013 -SP-I, Ministry of Consumer Affairs, Food & Public Distribution, of 27 
February 2015, amending Rule 20B of the Sugar Development Fund Rules 1983;51 
21. Export Incentive of INR 4,000 per ton (approxi mately 21 per cent of the world raw sugar price) 
for an additional 1.4 million tons above earlier seasons (19 February 2015);52 
22. Export Incentive of INR 3,371 per ton (August – September 2014);  
23. Export Incentive of INR 2,277 per ton (April – May 2014);  
24. Export  Incentive of INR 3,300 per ton (3 March – 31 July 2014) (indicating eligibility would be 
contingent on production and export of sugar);53 
25. Sugar Development Fund (Amendment) Rules, 2014, No tification GSR 128 (E)., 
F. No. 20(90)/2013 -SP-I, Ministry of Consum er Affairs, Food & Public Distribution, of 28 
February 2014, inserting rule 20B of the Sugar Development Fund Rules 1983;54  
26. Notification F. No. 1(14)/2018 -SP-I of Ministry of Consumer Affairs, Food and Public Distribution, 
Department of Food and Public Dis tribution of 5 October 2018, providing INR 1,000/ton for mills 
located within 100 kilometers (km) from ports; INR 2,500/ton for mills beyond 100km from the 
port in coastal states; and INR 3,000/ton for mills in other than coastal states or actual 
expenditu re, whichever is lower. It appears this is to be credited directly to the farmers on behalf 
of mills, to support the cane price;55 
                                                
51 Providing at sub -rule (4): "the incentive shall be at the rate of rupees three thousand three  hundred 
per metric tonn e for April -May,2014, rupee three thousand three hundred per  metric tonne for June -July,2014, 
and rupees three thousand three hundred seventy one per  metric tonne for August -September,  2014 and the 
incentive shall be rupees four thousand  per metric tonne f or the current sugar season 2014 -15(October, 2014 -
September, 2015)."  
52 Cabinet Committee on Economic Affairs (CCEA) Press Release, 18 November 2015.  
53 Cabinet Committee on Economic Affairs (CCEA) Press Release, 18 November 2015, "To  improve liquidity 
of sugar mills and facilitate payment of cane dues arrears, the Government  had increased the export incentive 
on raw sugar from Rs 3300/MT to Rs. 4000/MT in the  sugar season 2014 -15." 
54 Providing "the incentive shall be at the rate of Rupees three thousand three hundred per metric tonne 
for February and March, 2014 and, thereafter, be recalculated every two months after taking into account the 
average exchange rate of Rupee vis -à-vis USD …".  
55 Referred to in ''Cabinet approves comprehensive policy to deal with excess sugar production in the 
country', Cabinet Committee of Economic Affairs (CCEA) Press Release, 26 September 2018.  WT/DS581/1 • G/AG/GEN/153 • G/SCM/D125/1 • G/L/1302  
 
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  27. Communication F. No. 1 -3/2018 -Trade of the Ministry of Consumer Affairs, Food and Public 
Distribution, Department of Food and Public Distribution of 19 November 2018, clarifying 
notification F. No. 1(14)/2018 -SP-I of 5 October 2018;  
28. Ministry of Consumer Affairs, Food and Public Distribution, Department of Food and Public 
Distribution 'Sugar and Sugarcane Policy', at https://dfpd.gov.in/sugar -sugarcane -policy.htm . 
29. 'Price Po licy for Sugarcane (2018 -19 sugar season)', Commission for Agricultural Costs and 
Prices, Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and 
Farmers Welfare, Government of India, August 2017, at 
http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=41&KeyId=622 . 
30. 'Price Policy for Sugarcane (2017 -18 sugar season)', Commission for Agricultural Costs and 
Prices , Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and 
Farmers Welfare, Government of India, August 2016, at  
http://cacp.d acnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=41&KeyId=595 . 
31. 'Price Policy for Sugarcane (2016 -17 sugar season)', Commission for Agricultural Costs and 
Prices, Department of Agriculture and Cooperation, Ministry of Agriculture, Government of Indi a, 
August 2015, at  
http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=41&KeyId=576   
 
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