WTO:PMO may call meeting of officials to discuss India's stand

The Prime Minister's Office is expected to convene a meeting of top officials to discuss India's stand on crucial food security and trade facilitation issues ahead of WTO's October 21 meeting in Geneva.
"India will not change its stand on the food security issue. The commerce ministry is awaiting directions from higher authorities. PMO may call a meeting on the issue to discuss further course of action," a source said.
The General Council, the WTO's highest decision-making body, meets regularly in Geneva to carry out functions of the multilateral trade body. Sources said the next meeting is scheduled for October 21.

Speaking on India's stand, Commerce and Industry Minister Nirmala Sitharaman had yesterday said India would stick to its position on the food security issue as it is the sovereign duty of the government to protect the interest of its poor.
"Our position remains intact, that we will underline the fact that India has a sovereign duty to protect its poor... India has sovereign right to hold foodgrains for that purpose. And, therefore our negotiations with WTO will certainly be on reiterating this position," She had said.
The council's meeting on July 31 remained inconclusive after India stressed that Trade Facilitation Agreement (TFA) and finding a permanent solution to the food stock-holding issues should be taken up together.

India had also made it clear that it would not ratify the TFA until a permanent solution was found on the food security issue.

New Delhi had asked WTO to amend the norms for calculating agriculture subsidies so that the country could continue to procure foodgrains from farmers at minimum support price and sell them to poor at cheaper rates without violating the norms.
The current WTO norms limit the value of food subsidies at 10 per cent of the total value of foodgrain production. However, the quantum of subsidy is computed after taking into consideration prices that prevailed two decades ago.

India is asking for a change in the base year (1986-88) for calculating food subsidies. India wants a change taking into account the inflation and currency fluctuation.
There are apprehensions that once India completely implements its food security programme, it could breach the 10 per cent cap. Breach of the cap may lead to imposition of hefty penalties, if a member country drags India to the WTO.
According to a WTO filing, India has given a total farm subsidy of USD 56 billion, of which trade distorting subsidy amounts to only USD 13.8 billion for 23 commodities, including rice and wheat.

An official has said the food subsidy provided by India for paddy during 2010-11 worked out to be only around 6 per cent of the total output of the commodity in value terms. In case of wheat, the subsidy is negative one per cent.
On September 22, WTO chief Roberto Azevedo expressed concerns over the fate of Bali package, saying the deal was "at risk" and the future seemed "uncertain".