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.
However, despite the setback, trade officials told CNBC on Thursday they were still optimistic that a deal would be completed. CNBC anchor Lisa Oake reported from the conference that the mood had turned more positive on Thursday morning as the deal deadline fast approached.
(Read more: Indonesia Trade Minister: Less than 50% chance of WTO deal )
"Yesterday we heard delegation after delegation all saying that they want to get a deal here in Bali, so we still have some time and I'm hopeful we can achieve it," said U.S.Trade Representative Michael Froman.
Asked whether other delegates seemed likely to still sign a deal despite India's refusal to budge on its food security policies, Froman implied that the other members of the WTO had already compromised enough.
"The agreement that we all reached in Geneva was a well-balanced agreement with legitimate concerns about food security, but was also designed to ensure that didn't cause greater food insecurity and that was the deal that was on the table when we got here in Bali," he said.
"If you build up stocks of food and it finds its way dumped on to international market places, that lowers the prices and hurts other poor farmers in other poor countries, and that's not in the interest of the WTO," he added.
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On Thursday, local press reports in Indonesia said the Indonesian President is going to make a phone call to the Prime Minister of India in a last minute effort to save the round of talks taking place in Bali.