New Delhi India may seek a permanent solution to the issue of public stockholding for food security during the 12th World Trade Organization (WTO) ministerial conference beginning June 12 in Geneva.
As per current WTO rules, a member country’s food subsidy bill should not breach 10% of the value of production based on the 1986-88 base price, but India has amended the formula for calculating the food subsidy limit. is demanding.
“We are facing pressure from other countries to reduce the subsidies given to our farmers. But the subsidies we give are very low compared to the US and the EU. The Indian government subsidy to farmers is $300 per farmer, compared to $40,000 per farmer in the US.”
India also wants to add government programs that were launched after 2013 to the peace clause agreed at the Bali ministerial meeting.
Under this clause, the members of the WTO agreed to refrain from challenging any violation of the prescribed limit of 10% by a developing nation.
In short, developing countries cannot be taken to mediation as they are protected under the peace clause. However, this clause remains in force until a permanent solution is reached.
“Currently, the peace clause includes only government programs launched before 2013. India wants government programs launched after 2013 to be included in the enumeration,” the official said.
Queries sent to the spokesperson of the Ministry of Commerce and Industry remained unanswered till press time.
Last year, India invoked a peace clause in the WTO to exceed the 10% limit on support it gives to its rice farmers.
However, government officials said India had not violated the wheat cap, the export of which was banned earlier this month.
India had informed the World Trade Organization that its rice production in 2019-20 was valued at $46.07 billion and subsidies of $6.31 billion, or 13.7 per cent, were given over and above the 10% limit.
India is not the only country looking for permanent solutions to public stockholding programmes.
Developing countries such as China and part of the G33 group of African countries have also raised the issue at the WTO.
At the WTO last year, G-33 countries said that government purchases made under the Minimum Support Price (MSP) would not be used for exports.
“WTO rules do not allow export of a commodity from public stock as it distorts prices, which affects other countries. However, it is allowed if the export is made at market prices. Other countries argue that you (India) subsidize production as well as distribution.”
Another issue that could be raised by other WTO countries could be with respect to India’s contribution to the World Food Program (WFP).
“But India has been providing food grains for the WFP. It is to be noted that food grains given under WFP have been excluded from the export of restricted wheat announced earlier.”