![\"On](\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/On-Indias-Violation-of-WTOs-Agreement-on-Agriculture.webp?resize=471%2C367&ssl=1\")
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Source:<\/strong> This post on India\u2019s Violation of WTO\u2019s Agreement on Agriculture (AoA) has been created based on the article \u201cIndia\u2019s fight for food security at WTO\u201d<\/strong> published in \u201cBusiness Standard\u201d<\/strong> on 23rd<\/sup> January 2024.<\/p>\n UPSC Syllabus Topic: <\/strong>GS Paper 3 Agriculture \u2013 Issues related to direct and indirect farm subsidies and minimum support prices.<\/p>\n On India\u2019s Violation of WTO\u2019s Agreement on Agriculture,<\/strong> The article discusses the complaint against India breaching WTO\u2019s AoA limits. It also highlights why AoA is discriminatory against developing countries and what India should do in this regard.<\/p>\n A detailed article on WTO reforms and India <\/strong>can be read here<\/a>.<\/p>\n Background:<\/strong><\/p>\n The 13th Ministerial Conference of the World Trade Organization<\/strong><\/a> (WTO) will be held in Abu Dhabi next month.<\/p>\n India\u2019s main focus at this conference will be to defend its right to purchase food grains from its farmers at minimum support prices (MSPs) without violating the WTO\u2019s Agreement on Agriculture (AoA)<\/strong><\/a> rules.<\/p>\n India breaching AoA limits:<\/strong> The AoA permits price support up to 10% of the market value of a product<\/strong> in developing countries (like India). In 2020-21, India\u2019s price support for rice rose to about 15%<\/strong>. Market Price Support or MPS <\/strong>is the gap between a fixed external reference price and the applied administered price multiplied by the production quantity eligible for the MSP. The flawed methodology of the AoA causes the significant difference in Indian and US calculations of MPS. This is due to:<\/p>\n This makes the AoA discriminatory against developing countries<\/strong><\/p>\n <\/p>\n On Expanding Social Security<\/a><\/p>\n Third Globalisation and India<\/a><\/p>\n <\/p>\n Question for practice:<\/strong><\/p>\n What is the complaint against India regarding breaching of WTO\u2019s AoA rules? How are the AoA rules discriminatory against developing countries?<\/p>\n","protected":false},"excerpt":{"rendered":" Source: This post on India\u2019s Violation of WTO\u2019s Agreement on Agriculture (AoA) has been created based on the article \u201cIndia\u2019s fight for food security at WTO\u201d published in \u201cBusiness Standard\u201d on 23rd January 2024. UPSC Syllabus Topic: GS Paper 3 Agriculture \u2013 Issues related to direct and indirect farm subsidies and minimum support prices. On… Continue reading On India\u2019s Violation of WTO\u2019s Agreement on Agriculture (AoA)<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":279431,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[218,216],"class_list":["post-279310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-public","tag-agriculture","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/On-Indias-Violation-of-WTOs-Agreement-on-Agriculture.webp?fit=1280%2C1000&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/279310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=279310"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/279310\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/279431"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=279310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=279310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=279310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What is The Complaint Against India?<\/strong><\/h2>\n
\nHowever, the US and other countries claim that India\u2019s support is much higher, around 94%<\/strong>. This high level of support has led to India becoming the top rice exporter, holding 40% of the global market share.<\/p>\nWhat is The Calculation Methodology for MPS Adopted Under WTO\u2019s AoA?<\/strong><\/h2>\n
\nFor instance, the AoA uses a fixed external reference price of $262.51 per tonne to calculate price support for rice. This price is based on the export or import price of rice from 1986 to 1988<\/strong> and remains unchanged.<\/p>\nWhy does The Issue of Different Calculations of MPS Arise?<\/strong><\/h2>\n
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\nAs a result, the US and the EU today offer over 50% and 65% support and still comply with AoA rules. However, India is considered non-compliant for providing 15% price support.<\/li>\n<\/ol>\nWant To Know More Topics-<\/strong><\/h2>\n
What Should be The Way Forward for India?<\/strong><\/h2>\n
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