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Peace Clause Invoked 6th Time to Offer Rice Subsidies

2 min read

India's Invocation of the WTO Peace Clause for Rice Subsidies

India has invoked the peace clause for the sixth time due to exceeding the 10% subsidy ceiling provided to its rice farmers. This clause protects India's food procurement policies from WTO challenges.

Details of Subsidy Support

  • The total value of rice production in 2023-24 was reported at $56.87 billion.
  • Subsidies extended were worth $6.81 billion, amounting to approximately 12% of the production value, surpassing the permitted 10%.

Purpose of Support

India maintains that its public stockholding programmes for food security, established by the Bali Ministerial Decision, are not intended to distort trade or affect the food security of other nations, but to support its vulnerable population.

Additional Subsidies

  • A total of $43.25 billion was given as input subsidies to low-income or resource-poor producers for the year 2023-24, which was a reduction from the previous year's $48.13 billion.
  • Input subsidies cover areas like irrigation, fertilizers, and electricity.

Distribution and Sale of Excess Stocks

Excess grains in the central pool are distributed via the Open Market Sale Scheme through e-auctions, with a condition that bidders will not export these grains.

Other Agricultural Supports

  • India reported a cotton subsidy of $359.1 million.
  • Support for yellow soybean was $2.27 million.

Food Security Mechanisms

  • The Minimum Support Price (MSP) programme, public distribution system, and National Food Security Act, 2013 are critical elements of India's food security policy.
  • The primary aim is to meet the food security requirements of the country.
  • Tags :
  • WTO
  • Peace clause
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