India and Brazil are in talks to resolve a sugar dispute that originated in 2019 at the World Trade Organization (WTO). Some of the strategies being discussed include:
Increasing market access: India has offered to increase the volume of sugar imported from Brazil, which would help ease the supply-side pressure on international sugar prices.
Separate quotas for raw and white sugar: Brazil is requesting that India establish separate quotas for raw and white sugar to limit import volumes and protect domestic production.
Tariff-rate quota negotiations: The two countries are negotiating the terms of the tariff-rate quota (TRQ), which establishes the amount of sugar that can be imported before tariffs are imposed. Brazil is seeking a higher TRQ limit.
Both countries have expressed a willingness to find a mutually-beneficial solution to the impasse and maintain their strong trade partnership.