India on target of WTO for avoiding questions on MSP subsidy

Image used for representational purpose. , Photo Credit: PTI

India has come under fire from the World Trade Organization (WTO) for evading questions raised by members on the Minimum Support Price (MSP) programs of food grains, especially rice, where subsidies have breached prescribed limits. Some countries have alleged that India did not respond adequately to the concerns raised by them during the consultations.

According to sources, members like the US, Australia, Canada, the European Union and Thailand told the WTO Agriculture Committee meeting on Monday that India should answer questions on its public stockholding (PSH) programs in the committee. However, India stood by its stand and insisted that it provided the best possible information and clarifications in the consultations it held with interested members based on available information. It also said that some of the questions raised were already addressed in the earlier replies,” said a source.

peace clause

India’s MSP programs are under scrutiny at the World Trade Organisation, as it seeks to justify exceeding its 10% limit (of the total value of rice production) for rice support in 2018-2019 and 2019 using the Bali ‘peace clause’ The first country to implement is- 2020.

While the ‘peace clause’ allows developing countries to breach the 10% limit without legal action by members, it is subject to onerous notification requirements and a number of conditions such as not distorting global trade and not affecting the food security of other members. is under the.

WTO members, including the US, have been accusing India of habitually not including all required information in its notifications. Some members had earlier pointed out that reporting all public stockholding events under the ‘peace clause’ was mandatory, India was not doing so and the country did not have an adequate monitoring mechanism to ensure that no stock was exported I went.

‘no obligation’

New Delhi had said it provided data on value of production (VoP) for several crops, and was under no obligation to notify any public stockholding program other than the crop where the subsidy cap was breached. Was.

During the meeting of the Committee on Agriculture, the US, Brazil, Canada, Ukraine, Thailand, the European Union and Australia informed the Committee of all the questions they had raised in their individual consultations with India, and asked the country to respond to the Committee. Should be given and questions should not be avoided.