Q. Which of the following subsidies is/are NOT covered under Amber Box of WTO?
1. Minimum support price.
2. Direct help to production related activities.
Select the correct answer using the codes given below:
Red Book
Red Book

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: D
Notes:

All subsidies which are supposed to distort production and trade fall into the amber box, i.e., all agricultural subsidies except those which fall into the blue and green boxes.  

These include government policies of minimum support prices (as MSP in India) for agricultural products or any help directly related to production quantities (as power, fertilizers, pesticides, irrigation, etc). 

Source: TMH Ramesh Singh 

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