Sugar mills on Wednesday said the WTO ruling on Indian subsidies will not hurt them even as India is set to file an appeal after it lost a WTO dispute on subsidies.

“Indian Sugar Mills Association (ISMA) is confident that the current policies of the government on export of sugar and the subsidies therein, which were being given in the last few years are according to WTO rules and, therefore, there will be absolutely no impact on the Indian sugar mills or the sugarcane farmers,” the industry body said .

A World Trade Organisation (WTO) panel has ruled against India’s sugar export subsidy and domestic support to sugarcane growers in a dispute filed by Australia, Brazil and Guatemala.

India incentivises sugar exports through financial support to the sector, which employs more than 50 million farmers in politically sensitive states such as Uttar Pradesh and Maharashtra.

The commerce ministry said there would be no impact of the panel’s findings because it would file an appeal at the WTO.

In 2019, Brazil, Australia, and Guatemala requested dispute consultations with India regarding domestic support measures and alleged export subsidies provided by India to producers of sugarcane and sugar.

Ashlar Law, led by its partner Pingal Khan, supported WTO counsel for Brazil, Sidley Austin LLP, on Indian law questions.