Trade-distorting subsidies must be reduced: PM

Prime Minister Manmohan Singh today said that in order to break the impasse in WTO talks, developed countries must make meaningful offers to reduce the huge trade-distorting subsidies provided to their agriculture sector.

"It must be recognised that for us, agriculture is not just a business but a way of life and a major source of livelihood," Singh said while speaking at the Economist round table on India.

Singh said India is keen for the success of multilateral trade talks. "We are firm believers in a rule-based global trading system and hence, welcome resumption of negotiations in the Doha Round at the WTO. A multilateral trade regime is in our strategic interest. As a relatively small trading nation, we benefit from global rules of the game. We are, therefore, committed to an early positive conclusion to the Doha Round."

However, Singh emphasised the need to safeguard the agricultural system from the market vagaries. "Markets are good for those who are a part of market systems but have no meaning for those who do not have the skills or resources to participate in it. We should therefore work towards an outcome which does not destabilise and cause distress to this large section of people," Singh said.