The United States has demanded that India submit information pertaining to its National Food Security Act to the World Trade Organisation (WTO) and questioned its effectiveness as far as food security is concerned.
As per WTO regulations, if the subsidies that affect trade relations are found to be breaching 10% of the production values, the country in question is liable to penalties. The issues would be raised in the meeting of the organisation’s agriculture committee, slated to be held on March 21, 2014.
After negotiations at WTO’s ministerial conference, which took place in Bali last year, the developed countries promised that it wouldn’t take any action if subsidies breached the given caps if India submitted all information and documents pertaining to the programmes involving subsidies.
However, WTO stated that India has not submitted any data for the last ten years. “There are a number of criteria that a country like India would have to fulfill in order to make use of the provision,” said Peter Ungphakorn, information officer, WTO.
“These include ensuring that the stock build-up does not affect world markets and other countries' food security. The Bali decision also requires countries using the system to provide up-to-date information on their domestic support,” he added.
In its submission to WTO, the US said, “The cost of India's food subsidy bill is approximately twice the amount it would cost to provide all below poverty households with enough cash to cross the poverty line.”
“The significant cost of the food subsidy bill, compared to the poverty gap in India, highlights the large costs the government incurs in procuring, storing, and distributing food grains that could otherwise be more effectively used to alleviate poverty in India,” it added.
