Recently, India defended its minimum support price (MSP) policy for foodgrains at the World Trade Organization.
Recently, India defended its minimum support price (MSP) policy for foodgrains at the World Trade Organization (WTO), saying that it not only benefited vulnerable farmers but also furthered global food security, by keeping global prices in check and making foodgrains affordable for least developed countries. Sarthak Ray takes a look at the WTO’s policy on members’ subsidies
What India said at WTO
Under the WTO‘s Agreement on Agriculture (AoA), all domestic support in favour of agricultural producers is subject to rules. India told the WTO Agriculture Committee that its public stockholding programme ensured that it didn’t have to import the vast quantities it needed for its food security needs and thereby cause the price of grains to spike—which, in turn, ensured that LDCs didn’t find it too difficult to procure these. It underlined the fact that such stockholding had nothing to do with subsidised exports.
Recently, India defended its minimum support price (MSP) policy for foodgrains at the World Trade Organization (WTO), saying that it not only benefited vulnerable farmers but also furthered global food security, by keeping global prices in check and making foodgrains affordable for least developed countries. Sarthak Ray takes a look at the WTO’s policy on members’ subsidies
What India said at WTO
Under the WTO‘s Agreement on Agriculture (AoA), all domestic support in favour of agricultural producers is subject to rules. India told the WTO Agriculture Committee that its public stockholding programme ensured that it didn’t have to import the vast quantities it needed for its food security needs and thereby cause the price of grains to spike—which, in turn, ensured that LDCs didn’t find it too difficult to procure these. It underlined the fact that such stockholding had nothing to do with subsidised exports.
India’s public stockholding and why it has raised hackles of some members
Nine major grain exporters challenged India’s public stockholding in March this year. India has invoked the Bali Peace Clause many times with respect to its grains procurement and stockholding programme. The countries allege that the heavily subsidised stockholding is affecting food security of other countries. India has argued the reverse, against the backdrop of the shortage of grains because of Russia’s war against Ukraine.
It reportedly told the WTO committee that while global exports of rice amounted to 56 million tonne in 2021, those covered by the national food security programme got 58 mt. It has stated that it doesn’t export rice from its MSP-led procurement programme—rather, its exports are of premium quality rice. India has also relied on the data from its Open Market Sales Scheme that show that the biggest buyers have been state governments, and not private parties who could be suspected of exporting the grains.
India’s accusers, on the other hand, say it has not provided enough disclosures and has no mechanism to check stocks from being exported. India says it will provide certain data once it has compiled it. Along with the G-33 grouping and African nations, India is seeking a permanent solution for public stockholding of foodgrains.
Source:financialexpress.com