India's Invocation of the WTO Peace Clause
India has invoked the peace clause for the seventh time, as it has exceeded the 10% subsidy ceiling for rice farmers under World Trade Organisation (WTO) rules.
Subsidy Details
- India provided subsidies worth $7.6 billion to rice farmers in 2024-25.
- This subsidy constituted about 11.85% of the rice production value, which was $64.13 billion.
Peace Clause Explanation
- The peace clause allows protection for India's food procurement programmes from action by WTO members if subsidy ceilings are breached.
- The de minimis level for India and other developing countries is set at 10% of the value of food production.
India's Position
- India first invoked this clause in 2020, being the first country to do so.
- India declared that the breach of the limit is due to subsidies under public stockholding programmes aimed at food security for its poor and vulnerable populations.
- The stock acquired is meant to meet domestic needs without distorting trade or affecting the food security of other WTO members.
Financial Context
- India provided input subsidies worth $42.5 billion to low-income or resource-poor producers from October 1, 2024, to September 30, 2025.
- This amount is lower than the $43.25 billion provided in the previous year.
