WTO meet in Morocco: India to bat for permanent solution on food security

Commerce minister Suresh Prabhu will aim to strengthen India's stand to reach a permanent solution to the issue of public stockholding programmes for food security in the World Trade Organization (WTO) meeting in Marrakesh, Morocco,  according to media reports.

India is to bat for making the "permanent solution" a central agenda at the Marrakesh meet of world’s trade ministers, The Hindu Businessline reported.

The main issue for India is to stay secured against WTO action regarding minimum support price (MSP) given to farmers above the WTO cap. The issue gains more import in view of the recent farmer agitations across the country.

Prabhu will meet his counterparts from other nations in Marrakesh to decide on priority issues to be tabled in the Buenos Aires ministerial meeting scheduled to be held in December this year.

For India and other G-33 countries with agriculture-dependent population, subsidies like MSPs to farmers are extended for stockholding programmes and these are important for the large agricultural communities.

But intiatives like MSP are seen by the WTO as trade-distorting domestic support and are not allowed beyond a certain point.

In 2013, India made some progress on the agricultural issue as its draft proposal made way for safeguarding minimum support prices to farmers  in developing countries above the WTO cap till a permanent solution is reached by 2017.

It achieved an interim ‘peace clause’ which shielded the country from any action being taken by other member countries of WTO regarding domestic imposition of MSP. It also ensured, according to the government, “India’s food security operations are not constrained due to WTO rules.”

The 2013 Bali Package, negotiating trade barriers between developed and developing countries, relieved the G-33 countries from strict import quotas on agricultural produce. It was part of the Doha negotiations for trade liberalisation, and the negotiations will continue in Buenos Aires.

From 2013 onwards, G-33 countries tried to get the green box treatment for public stockholding programmes for food security. The goal was to include the price support systems under the limitless subsidies allowed by Green Box system of WTO. The Green Box subsidies are allowed on government support to farmers (other than price support), environmental protection, etc. The subsidies categorically do not include any provision that creates trade distortion.

But the proposal for this green box alteration was vehemently opposed by USA, European Union, Canada, Australia, Pakistan among others.