"Brazil and India Enhance Ethanol Collaboration, Resolve WTO Sugar Dispute"

27 Aug, 2024

Brazil and India Enhance Ethanol Collaboration, Resolve WTO Sugar Dispute

Brazil and India, the world's top sugar producers, are intensifying their collaboration on ethanol production technology, resolving their longstanding sugar subsidy dispute at the World Trade Organization (WTO). Brazilian Ambassador to India, Kenneth Felix Hacynski Nobrega, confirmed the strengthened bilateral relations and the initiation of a dialogue focusing on ethanol to address global sugar overproduction issues, which can impact prices. Brazil, which started its ethanol blending program in 1975, has extended technological support to India, aligning with the goals of the Global Biofuel Alliance launched during the G20 summit.

The dispute, raised by Brazil, Australia, and Guatemala in 2019 over India's Fair and Remunerative Price (FRP) for sugarcane, was addressed as India clarified that FRP is set by the government, while purchases are made by private mills. Brazil’s ethanol program, which has achieved a 27% blending rate in gasoline and plans to increase it to 30%, is being shared with India. Currently, India’s ethanol blending in petrol stands at 15.83%, with a goal of reaching 20% by 2025-26.

Additionally, Brazil’s Foreign Minister Mauro Vieira will visit India to co-chair the 9th India-Brazil Joint Commission meeting, focusing on expanding cooperation in agriculture and other sectors.