The 13th Ministerial Conference of the World Trade Organisation held in Abu Dhabi in February 2024 ended in a deadlock. However, the Union Minister for Commerce and Industry, Piyush Goyal, who led the Indian delegation, was “completely satisfied.” On the contentious issue of finding a permanent solution to India’s public stock-holding (PSH) programme for food security, he was alluding to the so-called ‘peace clause’ sanctioned at the 9th MC held in Bali (2013), and that arrangement stays. Does it help? Under the PSH programme, government agencies, such as the Food Corporation of India (FCI), buy agricultural produce such as wheat, rice/paddy, and coarse cereals from farmers at the minimum support price (MSP) and give it free to India’s poor under...
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Category: Agreement on Agriculture (AoA)
WTO deadlock over agricultural subsidies
At the WTO Ministerial Conference, India stood firm on its stance on public stock-holding programme, drawing strong opposition from the developed countries The 13th ministerial conference (MC) of WTO (World Trade Organisation) held on February 26-29, 2024 in Abu Dhabi has ended in a deadlock. This is because India leads about 80 countries—the G33 including India, African, Caribbean and Pacific countries, together called ACP—on – on one hand and the European Union (EU) and the USA representing the developed countries on the other didn’t budge from their respective pre-meditated positions. On the most important issue of finding a permanent solution to the public stock-holding (PSH) programme for food security, India’s stance was vehemently opposed by the USA/EU. Currently, under India’s...
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Tread the WTO quagmire with caution
The battle for a permanent solution to Public Stock-Holding programme is a difficult one; India must fight it deftly In a meeting of the Committee on Agriculture (CoA) of the World Trade Organization (WTO) – held on October 2, 2023, in Geneva, the European Union (EU) agreed to consider India’s demand for a permanent solution to public stock-holding (PSH) program for food security. This is a significant change of stance since March 2023, when the EU along with the USA and Canada had challenged it. The issue will be taken up for deliberation in the 13th ministerial conference (MC) of the WTO (World Trade Organization), scheduled from February 26-29, 2024 in Abu Dhabi. The MC is the highest decision-making body...
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Solving the public stockholding riddle
The EU countries want India to be more transparent about its public stockholding (PSH) program and put in place safeguards to prevent illegitimate exports In a meeting of the Committee on Agriculture (CoA) of the World Trade Organization (WTO) – held on October 2, 2023, in Geneva, the European Union (EU) agreed to consider India’s demand for a permanent solution to public stock-holding (PSH) programme for food security. This is a significant change of stance since March 2023, when the EU along with the USA and Canada had challenged it. India has urged WTO members to start text-based negotiations on the issue “as soon as possible, preferably in the senior official meeting scheduled during October 23-24, 2023”. Under text-based negotiations,...
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Don’t apologise for PSH subsidy at WTO
Indian rebuttal to the claim of developed countries on food security is logical as India’s public stockholding (PSH) has helped food security around the world Last month, in a meeting of the Committee on Agriculture (CoA) of the World Trade Organization (WTO) – it oversees the implementation of the Agreement on Agriculture (AoA) – developed countries including the USA and Canada challenged India’s public stockholding (PSH) programme saying “it is highly subsidized, especially for rice, and that this is affecting the food security of other countries”. India countered their claim by saying that far from any adverse effect, its PSH program was helping other countries ensure their food security. This is how its argument goes. In 2021, India distributed 58...
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MC12: Advantage developed countries
War against Covid-19 has to embrace all the three critical dimensions: testing, tracking, and treatment At the recent 12th Ministerial Conference (MC12) at the World Trade Organisation (WTO) headquarters in Geneva (June 12-17), it was advantage developed countries – the US, the European Union, the UK, Australia etc., — all the way. The Indian delegation led by Commerce Minister Piyush Goyal occupied the centre-stage steering negotiations in all key areas but the outcome was not in their favour. First, India went to MC12 demanding a Trade-Related Aspects of Intellectual Property Rights (TRIPS) Waiver for all Covid-related therapeutics and diagnostics, besides vaccines. Against this, the MC-12 granted a patent waiver (albeit ‘temporary’ and ‘limited’) only for Covid-19 vaccines which will allow India to authorise...
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WTO MC-12: Deft handling by India
While it was advantage developed countries all the way, India was able to avoid more harm to its interests At the World Trade Organization (WTO), even as all decisions are taken by consensus and every member country has equal voice, when it comes to actual confabulations, there are glaring inequalities. The developed countries—the US, the European Union, the UK, Australia, etc.—exercise disproportionately greater influence. They set the agenda of meetings, and get away with what they want even as developing countries are made to concur. The outcome of the just concluded 12th Ministerial Conference (MC12) at the WTO headquarters in Geneva (June 12-17) is broadly in sync with this trend seen in the past. For India, the most crucial area...
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The policy flip-flop on wheat exports
Obtrusive controls on food supply and distribution are a major constraint on exports. They aren’t also good for India’s fiscal health In the backdrop of increase in international price of wheat (courtesy, Ukraine crisis) early this month, Prime Minister Narendra Modi, had exhorted that India can help meet the global requirements of food deficit countries, provided the World Trade Organisation (WTO) allows it. He also exuded confidence that this had created an opportunity for Indian farmers to increase their income. Even as stakeholders were gearing to undertake export with several of them having signed contracts, on May 13, 2022, the Director General of Foreign Trade (DGFT) put a ban on wheat export with ‘immediate’ effect. The exports under government-to-Government arrangements...
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India’s ambitious wheat export plan could come under WTO lens
Amidst the Ukraine crisis, supplies of wheat from Russia and Ukraine have been disrupted, leading to a steep increase in its international price. In this backdrop, sitting on plenty of wheat stock, Prime Minister Narendra Modi has exhorted that India can help meet the global requirements, provided the World Trade Organisation (WTO) allows it. The caveat merits serious consideration. India runs a mammoth programme of public stockholding (PSH) for food security purposes. Under it, agencies of the government like the Food Corporation of India (FCI) buy agri-produce such as wheat, rice/paddy, coarse cereals, from farmers at the minimum support price (MSP) and distribute at a heavily subsidised price of Rs 1/2/3 per kg through a network of fair price shops...
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Public stockholding initiative at WTO
India wants the upcoming 12th Ministerial Conference in Geneva to take up ‘total exemption for support to public stockholding for food security’ In the run up to the 12thWorld Trade Organization (WTO) Ministerial Conference scheduled to be held from November 29, 2021, India has made two submissions. One, subsidies given for maintaining food security programs of developing countries should be allowed without any limit and two, member countries who give trade distorting farm subsidies in excess of $10 billion should eliminate them within three years. India runs a mammoth program of public stockholding for food security purposes. Under it, agencies of the Government like the Food Corporation of India (FCI) buy agri-produce such as wheat, rice/paddy, coarse cereals from farmers...
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