As we know India’s farm subsidy policies appeared under the scanner at the World Trade Organization (WTO) during the country’s trade policy review (TPR), with fellows such as Canada, the US and Australia complaining that India has not proclaimed its agriculture export subsidies for more than eight years. In this article, we will discuss on India’s agriculture export subsidy policies.
India’s agriculture export subsidy policies
India’s farm subsidy policies attained under the scanner at the World Trade Organization (WTO) during the country’s trade policy analysis. With units such as Canada, the US and Australia complaining that India has not proclaimed its agriculture export subsidies for more than eight years, while Brazil held that India’s longstanding assistance criteria for sugar have suppressed global prices by up to 25%.
Translating units’ appreciations against India’s farm subsidy policies, the WTO chairperson confessed the high level of government intervention in the agriculture sector was a furious point for members.
Further, Members perceived the importance of the sector in supporting livelihoods and food security. Also, they compelled India to reform its agricultural policies that proceeded to be based on crucial levels of domestic and export support for key crops, containing subsidies for specific crops such as sugar and inputs.
Further Notification by WTO
India’s quadrennial TPR was published in January by the WTO, but the minutes of the conversations were released last week.
The US complained that the government programme to acquire food products from farmers at minimum support prices distorts domestic market prices and incentivizes over-production of commodities such as rice and wheat.
While praising India’s recent record of WTO notifications, Canada also conveyed concern over the lack of transparency in India’s Agri export subsidies. One area where we motivate India to do further work is concerning its agricultural export subsidies (ES:1) notifications where its last announcement was for 2009.
India in its answer to the WTO members over the concerns raised asserted the assistance given is large to small and frontier farmers and is in accordance with India’s commitments at the WTO.
Download E-Startup Mobile App and Never miss the latest updates reciting to your business.