Home / Agriculture/ India giving rice and wheat production vast support, US tells WTO

India giving rice and wheat production vast support, US tells WTO


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 10 May 2018 00:08


 

Geneva (Reuters): India is supporting its rice and wheat farmers with payments that are far higher than the amounts allowed by the World Trade Organisation, the United States said in a statement published by the WTO yesterday.

“It appears that India provides market price support (MPS) for wheat and rice vastly in excess of what it has reported to the WTO,” the US statement said.

“India’s apparent MPS for wheat appears to have been over 60% of the value of production in each of the last four years for which India has notified data. Its apparent MPS for rice appears to have been over 70%.”

Anything over 10% would break WTO rules, it added.

India has made reform of agricultural subsidies a major negotiating issue at the WTO in the past five years.

It has won preliminary WTO backing for a system of public stockholding of farm produce for food security purposes, but the United States and others have been wary of its plans, warning that payments which encourage production could lead to oversupply and, potentially, a spillover onto world markets.

In its analysis, the United States looked at India’s payments for the four most recent years that it had notified to the WTO, from 2010/11 to 2013/14.

The US statement said that India was the world’s second or third largest agricultural producer, while its agricultural exports increased by 22% during the years in question, as it moved from being the 10th to the seventh largest exporter.

It was the world’s top rice exporter, with 20% of its crop covering a third of the world export market.

In 2013/14, India had notified MPS for rice of INR 120 billion ($1.78 billion), equivalent to 5.45% of the value of rice production. By the US calculation, the true figure was over INR 1.780 trillion ($26.43 billion), or 76.9% of production.

Payments for wheat in the same year were officially a negative INR 49 billion, whereas the US analysis put them at INR 965 billion, or 65.3% of the value of production.

The United States has campaigned for WTO members to be more transparent about their trade policies, both to comply with WTO rules and to guard against hidden protectionism. It said it wanted to discuss its findings and their significance for world markets.

 


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Automation and machine learning: Helping organisations extract deeper value from data

Tuesday, 22 January 2019

The world is in the midst of a data explosion. Humans are generating an estimated 2.5 quintillion bytes of data every single day1, according to Forbes, and more data was created in the past two years than in all of human history. No wonder data now r


SL tourism: From TOM to experience the brand in 2019

Tuesday, 22 January 2019

Last week I had just crossed the border that separates Laos from Thailand and was on route via land to Thailand. My mind was on Laos – a country branded globally as ‘Simply Beautiful’ (backed by the ADB in 2018) to attract visitors into the cou


Questionable (or absurd) official report on poverty indicators

Tuesday, 22 January 2019

The latest Report issued by the Ministry of National Policies and Economic Affairs on ‘Poverty Indicators’ is both questionable and outrageous.1This Ministry is under the responsibility of the Prime Minister, Ranil Wickremesinghe. Most of the sta


Teaching the younger generation to observe professional ethics is the need of the hour

Tuesday, 22 January 2019

When Sri Lanka got independence in 1948, it was one of the most promising nations both in Asia and in the Commonwealth countries. It had luckily emerged unscathed after the Second World War unlike our neighbours. Sri Lanka furthermore did not have to


Columnists More