7 reasons why India’s WTO food security

stand is rightlivemint.com (http://www.livemint.com/Politics/R1fIXweMJHelr9NVlTyoqL/7-reasons-

why-Indias-WTO-food-security-stand-is-right.html)

(http://www.livemint.com/)

(http://www.livemint.com/budget2014)

BUDGET 2014 (http://www.livemint.com/budget2014)

(http://www.edelweissfin.com)

(http://www.marutisuzuki.com/ritz.aspx)

Facebook Group: Indian Administrative Service ( Raz Kr)

For most of the developing countries including India, public stockholding for

food security is a livelihood issue. Photo: Ramesh Pathania/Mint

India’s strong stand on food security at the World Trade Organization (WTO) has

threatened to derail the first multilateral trade agreement reached in the last two

decades. Developed countries have complained that India is going back on its

promise made at Bali last December where it was agreed that the Trade

Facilitation Agreement will be made a WTO rule by 31 July, while a permanent

solution to the food security issue will be found only by 2017. India has

maintained that different timelines for various elements of the Bali package is

against the WTO rules of a single undertaking where everything need to be

implemented simultaneously.

Mint takes a look at the logic of India’s position:

1■ -India’s complaint is justified. According to the WTO rule, public

stockholdings must not exceed 10% of the value of foodgrains produced and

calculated at the base price of 1986-88. You cannot calculate current food

subsidy limits by 1986-88 prices. That beats all logic.

2■ For most of the developing countries including India, public stockholding for

food security is a livelihood issue, a matter which should not be even debated at

Facebook Group: Indian Administrative Service ( Raz Kr)

WTO.

3■ Developed countries lose nothing if they allow higher public stockholding by

developing countries after putting in place a mechanism with reasonable limits

to ensure developing countries do not dump their excess cereals at rock bottom

prices in the international market.

4■ Allowing developing countries to continue to provide price support to their

farmers will be a big confidence booster in multilateral trade, given that the

focus of the ongoing Doha round of negotiations is supposed to be on

“development”. Developed countries can claim moral victory and fast-track the

remaining issues of the Doha round once they oblige the food security demand

of the developing countries.

5■ Food security is the foundation upon which the United Nations’ Millennium

Development Goals to eradicate extreme poverty and hunger stand. Forcing

developing countries and Least Developed Countries to agree to anything which

may compromise their right to food security will not only compromise basic

human dignity but also go against the UN declaration to which all countries are a

signatory.

6■ The government support to farmers in developed countries are way ahead of

what developing countries can even afford to provide. For example, while India

provides about $12 billion farm subsidy to its 500 million farmers, the US

provides around $120 billion to its 2 million farmers. The figures could be

contested, but not the trends.

7■ Lastly, there is wide realisation in India at the state and central government

level about the rising burden of subsidies and there is a serious move to make it

more targeted through the use of technology as in the case of the Direct Benefits

Transfer programme. To expect it to happen at the pace developed countries

wish means one does not understand the complexities of a country like India.

First Published: Tue, Jul 29 2014. 07 17 PM IST

Also Read

ALSO READclose

Facebook Group: Indian Administrative Service ( Raz Kr)

US stocks decline as Russian sanctions overshadowphone rally(http://www.livemint.com/Money/PiEZsEFk0dxFsCni78TorK/US-Europe-stocks-rise-on-earnings-as-bonds-gain-ruble-fall.html)

Subscribe (http://www.livemint.com/subscription) | Contact Us

(http://www.livemint.com/Object/LkWNwhewczPv8A8OHmiB8M/contactus.

html) | mint Code

(http://www.livemint.com/Object/h91DzWUKgHwMnw2nYc3XdJ/mintcode.h

tml) | Privacy policy

(http://www.livemint.com/Object/DSH31Msx7jzRq6nPedwI1I/privacypolicy.

html) | Terms of Use

(http://www.livemint.com/Object/FfxJLTnyJiJxd0wk1aNibM/termsofuse.html)

| Advertising

(http://www.livemint.com/Object/rUAqMnI9zHjrktTIxLwssN/advertising.htm

l) | Mint Apps (http://www.livemint.com/apps) | About HT Media

(http://www.htmedia.in/Section.aspx?Page=Page-HTMedia-AboutUs) | Jobs

(http://www.livemint.com/Object/ZhfSZaRPCdFSseEKXdt3LM/jobs.html)

Contact Us

(http://www.livemint.com/Object/ncTNKdFiWwPDG42Qe77XhP/mintasia-

home.html)

Copyright © 2014 HT Media All Rights Reserved

1.

livemint.com (http://www.livemint.com/Politics/R1fIXweMJHelr9NVlTyoqL/7-reasons-

why-Indias-WTO-food-security-stand-is-right.html)

Facebook Group: Indian Administrative Service ( Raz Kr)