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| Brazil is the world's largest producer of sugar and ethanol. (Source: Reuters) |
India and Brazil have begun talks to resolve their sugar trade dispute at the World Trade Organization (WTO). The South American country could share ethanol production technology with New Delhi as part of a solution to the dispute, an Indian official said, according to PTI .
According to the official, in addition to several rounds of negotiations, the two sides have held inter-ministerial meetings in New Delhi. Notably, Brazil has expressed its intention to share ethanol production technology with India. "That is a positive thing," the Indian official stressed.
In addition to being the world's largest producer of sugar and ethanol, Brazil is also a world leader in ethanol production technology.
Ethanol is used to blend with oil to power vehicles. Using ethanol, extracted from sugarcane, broken rice and other agricultural products, will help India cut its dependence on foreign imports.
India is the world’s third-largest importer and consumer of oil. The country currently relies on imports for 85% of its oil needs. In addition, as part of its plan to cut carbon emissions, India has set a target of 20% ethanol blending in gasoline by 2025.
Like the recent agreements between India and the US to resolve trade disputes, the country is now trying to follow a similar process to resolve sugar-related trade disputes with other countries at the WTO.
Brazil, Australia and Guatemala filed a complaint against India in 2019 at the WTO alleging that its sugar subsidies to farmers exceeded a “de minimis” level of 10% of the total value of sugarcane production, which the countries claimed violated the WTO’s Agreement on Agriculture.
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