Efforts on at WTO for positive outcome on food security issue

Developing countries including India are making all efforts in the WTO for a positive outcome on the food security issue, parliament was informed today.
"The G-33 coalition of developing countries , of which India is also a member, is making all efforts to negotiate and achieve a positive outcome on the issue of public stockholding for food security purposes," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.
Ending months-long deadlock, the WTO in November last year acceded to India's demand to remove constraints on the food stockpiling issue.
The WTO's General Council, the highest decision making body of the organisation, accepted India's demand for extending the peace clause till a permanent solution is found for the food stockpiling issue.

This has enabled India to continue procurement and stocking of foodgrain for distribution to poor under its food security programme without attracting any kind of action from WTO members even if it breaches the 10 per cent subsidy cap as prescribed by the multilateral trade body.
For a permanent solution, India had proposed either amending the formula to calculate the food subsidy cap of 10 per cent which is based on the reference price of 1986-88 or allowing such schemes outside the purview of subsidy caps.

If no solution is found by the agreed deadline of December 31, the peace clause will continue till the time a solution is found.

She said that the decision of the General Council was adopted through consensus.
The WTO members "will not challenge the public stockholding programme of developing country members for food security purposes, in relation to certain obligations under the relevant WTO rules, that will remain in place in perpetuity until a permanent solution has been agreed and adopted," she said.