U.S. and European officials told CNBC there was still a chance of a deal being made at the World Trade Organization (WTO) conference, despite India's refusal to budge on its food security policies having damped expectations for a trade deal.
Hopes that a global trade deal would finally be closed at this week's WTO meeting in Bali had been high, but Indian Trade Minister Anand Sharma threw a spanner in the works on Wednesday. Sharma told delegates that India would not be willing to compromise on food security policies which involve subsidizing food for the poor.
(Watch now: India calls WTO agricultural deal 'half baked')
While the draft Bali deal would allow India to keep its subsidized food policy for four years, Indian policy makers want a further extension.The issue is complicated by the fact that India's ruling Congress Party faces elections in May; poverty and food security are important issues in the country. If India refused to agree to the current draft it could block a deal from being done in Bali.