WTO PRESSURE ON INDIAN FARM SUBSIDIES
Why in the News?
- India faces pressure at the WTO regarding its farm subsidies amid protests for a legal minimum support price (MSP).
- The Cairns Group, including Australia, Brazil, and Canada, alleges India’s public stockholding (PSH) program distorts global food prices and harms food security in other countries.
Source: Slide Serve
India’s Stand and Demands:
- India seeks better legal protection for its MSP program to withstand pressure at the WTO.
- While India benefits from the ‘Peace Clause’ protection, ambiguity in its provisions leaves room for disputes, prompting India to seek a permanent solution.
- India’s demands at the ministerial meeting include amending subsidy caps and expanding the ‘Peace Clause’ to cover programs introduced after 2013.
About Minimum Support Price (MSP)
· MSP guarantees farmers a set price for their produce when sold to the government. · Determined by the Commission for Agricultural Costs and Prices (CACP), considering factors like production cost, market trends, and demand-supply dynamics. · CACP, established in January 1965, operates under the Ministry of Agriculture and Farmers Welfare. · Final approval on MSP levels is made by the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister of India. |