WTO meet: India for permanent solution to food security issues
Trade ministers of 164 member countries of the WTO are meeting against the backdrop of the uncertain global economic situation due to the Red Sea crisis, the Ukraine-Russia war and the Israel-Hamas conflict.
World Trade Organisation (Photo: Reuters)
NEW DELHI: India will strongly oppose a China-led proposal for an investment facilitation pact besides pressing for finding a permanent solution to public stock holding of grains for food security and protection of the interests of fishermen at the WTO ministerial meeting beginning Tuesday.
The Indian delegation is led by Commerce and Industry Minister Piyush Goyal. The four-day 13th ministerial conference (MC13) will start on February 26 in Abu Dhabi, the United Arab Emirates (UAE).
Trade ministers of 164 member countries of the World Trade Organisation (WTO) are meeting against the backdrop of the uncertain global economic situation due to the Red Sea crisis, the Ukraine-Russia war and the Israel-Hamas conflict.
The key issue of India’s interests at the meeting relates to finding a permanent solution for its minimum support price (MSP) issue for food security, agricultural reforms, fisheries subsidies, e-commerce moratorium on import duties, dispute settlement, and WTO reforms. *Food security issues: The public stock-holding (PSH) programme is a policy tool under which the government procures crops like rice and wheat from farmers at MSP, and stores and distributes foodgrains to the poor.
India stresses the need for PSH for its large, vulnerable population and wants a permanent solution from the MC13. Food procurement, stockholding, and distribution are crucial to India’s food security strategy. MSP is normally higher than the prevailing market rates and sells these at a low price to ensure food security for over 800 million beneficiaries. However, the WTO’s Agreement on Agriculture limits the ability of a government to purchase food at MSP.
Under global trade norms, a WTO member country’s food subsidy bill should not breach the limit of 10 per cent of the value of production based on the reference price of 1986-88. As part of the solution, India has asked for measures like amendments in the formula to calculate the food subsidy cap. Developed nations are of the view that such programmes distort global trade prices of food grains.
India supports efforts to improve the working of the WTO but its key pillars like special and differential treatment for less developed and developing nations, equal voice and dispute settlement mechanism should be retained while undertaking reforms, an official said.