Australia has threatened to take international trade action against India unless it cuts heavy subsidies paid to its cane farmers, which have led to a major sugar glut and low prices in world markets.
Trade Minister Simon Birmingham has raised the issue with India's High Commissioner to Australia and the country's commerce and industry minister, The Australian reports.
"We won't hesitate to tell other nations when we believe they are acting in breach of the established rules of international trade," Mr Birmingham said.
"Sugar subsidies in India and Pakistan are clearly hurting sugar growers in other parts of the world and are an unsustainable distortion that ought to be brought to an end."
Global sugar prices have plunged to a 10-year low in the past two years, shaving $600,000 off Australia's $2 billion export sugar industry and rendering thousands of growers unprofitable.
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