India seeking amendments to subsidy as it would hit food aid

Subscribe to GoodReturns
For Quick Alerts
For Daily Alerts
    India seeking amendments to subsidy as it would hit food aid
    India on Friday said along with the G33 countries, it is seeking an amendments to the 10 percent subsidy cap of the WTO as it would hit the food aid programmes in the developing countries.

    G33 countries are grouping of developing nations. The WTO's Agreement on Agriculture does not restrict public stockholding programme for food security purposes.

    However, if foodgrain is acquired at administered prices and not at market rates, all such price support has to be kept within a limit of 10 percent of the value of production of the commodity in question.

    "India, as part of a coalition of developing countries known as 'G33', has proposed an amendment to this cap that is a constraint to procurement and food aid programmes in developing countries," Minister of State for Agriculture and Food Processing Industries Sanjeev Kumar Balyan said in a written reply to the Rajya Sabha.

    Last month, India has decided not to ratify the trade facilitation agreement, aimed at easing customs procedures, because the WTO members have not taken any step towards finding a permanent solution on the food subsidy issue of India.

    During the WTO's Ministerial Conference in Bali last year, it was agreed by the members to put in place an interim mechanism and to negotiate for finding a permanent solution on public stockholding for food security purposes within four years.

    "In the interim, until a permanent solution is found and subject to certain conditions, members will not be challenged in the WTO even if the support in respect of public stockholding programmes for food security purposes exceeds the limit of 10 per cent of the value of production in question," he said.


    Read more about: subsidy wto g33 countries
    Story first published: Saturday, August 9, 2014, 10:24 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more