Subsidies over and above the prescribed ceiling are seen as trade distorting. The limit is fixed at 10 per cent of the value of food production for developing countries like India.
According to the notification of the WTO, “India wishes to notify” the committee on agriculture that it has “exceeded” the de minimis level of the subsidy cap for rice for the marketing year 2020-2021.
The value of its rice production was USD 45.57 billion in 2020-21, and for that it provided subsidies worth USD 6.9 billion.
India’s “breach” of commitment for rice, a traditional staple food crop, under a provision of the agreement on agriculture arises from support provided under public stockholding programmes for food security purposes, it said.
Stocks under the programme are acquired and released in order to meet the domestic food security needs of India’s poor and vulnerable population, and not to impede commercial trade or food security of others, it said.
“For these reasons, the breach of the de minimis limits for rice is covered by the peace clause set out in the Bali ministerial decision on public stockholding for food security purposes,” it added.
