(MENAFN- KNN India)
New Delhi, Nov 30 (KNN)
Five major agricultural producers, led by the United States, have accused India of providing excessive support to its rice and wheat farmers, alleging a breach of World Trade Organisation (WTO) subsidy limits.
India's representatives in Geneva have dismissed these allegations as“baseless,” vigorously defending the country's compliance with WTO obligations.
The counter-notification, introduced by the US on behalf of Canada, Argentina, Canada, and Ukraine at the WTO Committee on Agriculture, challenged India's recent Farm subsidy notifications.
It claimed that India's support to rice and wheat farmers reached 87 per cent and 67-75 per cent of production value, significantly exceeding the WTO-mandated cap of 10 per cent for developing nations.
This calculation was based on data from 2021-22 and 2022-23, referencing the outdated price baseline of 1986-88.
India responded sharply, questioning the validity of the calculations and pointing out flaws in the Agreement on Agriculture's methodology.“India has consistently complied with its WTO commitments.
These accusations rely on outdated reference prices and disregard the need for adjustments to reflect current economic realities,” an Indian official stated.
India also reiterated its long-standing demand for revising the 1986-88 base year, which fails to account for inflation and evolving market dynamics.
The US-led group argued that India's policies negatively impact global rice markets, particularly those of developing nations. Several countries supported this concern, citing the distortive effects of India's Minimum Support Price (MSP) regime and large-scale subsidies.
India maintains that its subsidy practices are essential for ensuring food security and meeting the UN's Sustainable Development Goal of zero hunger by 2030.
A WTO "peace clause" currently shields developing countries like India, allowing them to provide domestic support without fear of disputes. However, India has emphasised the need for a permanent solution to the public food stockpile issue.
With rice production valued at USD 52.8 billion in 2022-23 and subsidies amounting to USD 6.39 billion, India continues to defend its policies, urging WTO members to adapt rules that reflect the realities of developing economies.
The debate underscores the growing friction over agricultural trade policies within the WTO framework.
(KNN Bureau)
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