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Financial Matters Advocate On India's Stand About Food Grain Stock Pile Issue


India is not going to compromise with the interest of the poor famers and is firm to pursue the WTO for amendments in the norms for calculating agricultural subsidies. The present ceiling set by WTO is 10 per cent of the value of production for India and other developing countries which is inadequate in order to procure food grains from farmers at minimum support price and sell that to poor at cheaper rates. In addition, the base year (1986-88) for calculating the food subsidies is old and should be revised.

For the approval of the trade facilitation agreement (TFA) it is necessary to find a permanent solution on the food grain stock pile issue. " There is no concrete study which convey that the TFA would give a $ 1-trillion boost to global GDP. To be very honest India should focus on its internal strength; our people and our farmers. We are world's fourth largest economy and can't allow a servile approach in any matter, we should remain firm on such stands for the sake of our people". Kislay Pandey - Financial Matters Advocate, the Supreme Court of India.

Indian government is quite positive that solution to the food stockpile issue at the WTO will be realised at negotiations beginning next month at Geneva, which will also pave the way for signing of the trade facilitation agreement. "We, India will not compromise on the interest of poor farmers and consumers at the WTO and has sought complete resolution of the food grain stockpile issue, which is essential for unhindered implementation of the country's food security programme." - Commerce and Industry Minister Nirmala Sitharaman.

India is not at all against the TFA, but it should be signed only with the permanent solution on the food grain stockpiling issue for food security purposes. India is not alone to defy World Trade Organisation on this issue, several African and Asian countries too have similar concern as India. There are apprehensions that breaching the 10 per cent cap may lead to imposition of hefty penalties if a member country drags India to the WTO. But, it is not such easy to penalise. "Under the peace clause, WTO members get immunity against penalty for breaching the food subsidy cap. It would also allow India to procure food grains at the minimum support price and sell it at subsidised rates through the public distribution system." - Kislay Pandey - Financial Matters Advocate, the Supreme Court of India.

Link website :http://supremecourtlawyeropinion.blogspot.in/

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