The government has fought all odds to get the food security bill – an entitlement programme that covers 67% of India’s 1.2 billion large population under a subsidised grain regime, passed in the Parliament. But the battle now shifts to the global stage with India having to convince negotiators, particularly the United States, at the WTO meeting in Bali, that this new law will not have ‘market distorting’ effects on trade. Commerce Minister Anand Sharma will meet the new WTO Chief Roberto Azevedo on October 7, and at the core of their discussions is likely to be India’s demand for the amendment of the Agreement on Agriculture (AoA). In a nutshell, this agreement restricts India and other developing nations from exceeding ‘market distorting subsidies’ that it gives to farmers, beyond 10% of total production. This is also called de minimis support. According to Martin Khor, executive director of the South Centre (an inter-governmental organisation of developing countries based in Geneva), India is among the countries that risks exceeding this 10% threshold, with the ambitious food security programme being rolled out. “In case of paddy India has already breached the 10% threshold. We are at 24% currently. India will have to defend its right to subsidise, because the livelihood security of small farmers is at stake. We allowed the US to boost its subsidies, now it is their turn to let us fulfill our domestic commitments. Else let us approach the dispute panel of the WTO,” Devinder Sharma, a food and trade policy expert told Business Standard
Posted on: Mon, 07 Oct 2013 07:24:45 +0000
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