WTO Meet India to push for permanent solution to public stock holding of grains
- INDIA will strongly oppose a China-led proposal for an investment facilitation pact.
Key Highlights
- India is 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
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.
- 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 percent 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.
- Joint Support Initiatives (JSIs) or plurilateral agreements India opposes this move being pushed for certain nations.
Prelims Takeaway
- Joint Support Initiatives
- Public stock-holding