This is an archive article published on January 19, 2024
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‘Permanent solution for public stockholding top priority for India’
Some WTO members including the US and Europe have been trying to shift the narrative of food security from public stockholding (PSH) to value-chain, market access and export restrictions.
A permanent solution at WTO will give India and a coalition of developing countries the flexibility to give out higher farm support. As per WTO norms, agri subsidy should not exceed 10 per cent of the value of agricultural production for developing countries. But developing nations receive certain protections.
Even as developed countries continue to flag concern over India’s food security programme for distorting global food prices, New Delhi is set to keep up the pressure for a permanent solution on public stockholding for food grains at the 13th ministerial conference of the World Trade Organization (WTO) next month in Abu Dhabi, a senior government official said on Thursday.
“The public stockpiling of food grain is the longest pending issue. Promise was made by the members in the Bali ministerial and then later endorsed by subsequent conferences. Without that, we will not take part in any discussion on any other issue on agriculture, unless the mandated issue is settled,” the official said.
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This comes as developed and developing nations continue to differ on the subject of domestic support for farmers so much so that the WTO Director-General, Ngozi Okonjo-Iweala in November last year said that ongoing agriculture negotiations have “failed to achieve” the progress WTO members have called for.
Some WTO members including the US and Europe have been trying to shift the narrative of food security from public stockholding (PSH) to value-chain, market access and export restrictions.
“India strongly opposes any comprehensive outcome on agriculture, linking PSH with domestic support or work programme as suggested by some developed country members,” the official added.
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A permanent solution at WTO will give India and a coalition of developing countries the flexibility to give out higher farm support. As per WTO norms, agri subsidy should not exceed 10 per cent of the value of agricultural production for developing countries. But developing nations receive certain protections.
India has maintained that it has to protect the interest of poor and vulnerable farmers, besides taking care of the food security needs of a large section of the population. The government provides 5-kg of free food grains per month to around 80 crore poor people free ration to about 80 crore people under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).
India’s subsidy on rice had exceeded the threshold on multiple occasions forcing it to invoke the ‘peace clause’ agreed during the Bali ministerial in 2013 which allows developing countries to breach the 10 per cent ceiling without invoking legal action by members.
A permanent solution at WTO will give India and a coalition of developing countries the flexibility to give out higher farm support. As per WTO norms, agri subsidy should not exceed 10 per cent of the value of agricultural production for developing countries. But developing nations receive certain protections.
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