Q. Which of the following subsidies is/are covered under “Green Box of WTO”?
1. Public storage for food security.
2. Pest and disease control.
3. Crop and income insurance.
Select the correct answer using the codes given below:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: B

The agricultural subsidies which cause minimal or no distortions to trade are put under the green box. They must not involve price support.  

  • This box basically includes all forms of government expenses, which are not targeted at a particular product, and all direct income support programmes to farmers, which are not related to current levels of production or prices.  
  • This is a very wide box and includes all government subsidies like—public storage for food security, pest and disease control, research and extension, and some direct payments to farmers that do not stimulate production like restructuring of agriculture, environmental protection, regional development, crop and income insurance, etc. 

Source: TMH Ramesh Singh