Who Questions India’s WTO Subsidies to Farmers: Look at Your Home First!-India Subsidies Farmers update 

Some WTO members, including the US and the UK, have raised questions about India’s $48 billion farm input subsidies for 2022-23, which, according to New Delhi, have increased due to inflation and rising costs of fertilizers, an official said.-India Subsidies Farmers update

The issue was raised by these members of the World Trade Organization (WTO) during a meeting of the committee on agriculture on May 23-24.-India Subsidies Farmers update

“India explained that the input subsidies are mainly for power, irrigation, and fertilizers and that the increase was due to inflation and rising costs of fertilizers. It insisted that the information had been duly notified to the WTO,” informed a former top government official to AIRRNEWS expert closely following WTO activities.

Agricultural subsidies are, in part, a recognition of the unique challenges that the sector faces and the important role it plays in ensuring food security in our society. However, these subsidies can also have trade-distorting effects, leading to many international disputes.

Almost Everyone Give Them

Governments worldwide provide over US$700 billion in subsidies to their agricultural sectors annually. The OECD’s “Agricultural Policy Monitoring and Evaluation 2020” report revealed that 54 countries, including OECD and EU nations, plus 12 key emerging economies, offer this support. The majority of this support, totaling US$536 billion, comes in the form of payments to producers, with the remainder allocated to consumer support and enabling services like infrastructure investment and research and development. Finds AIRRNEWS in its global research. 

Agricultural subsidies are essential due to the challenges faced by the sector, such as weather dependence, vulnerability to natural disasters, and the significant upfront investment required before profits can be realized. However, these subsidies can create trade imbalances, leading to international disputes.

Few Nations with Names

Countries like Brazil, Australia, and Guatemala have contested India’s subsidies to its sugar industry, while the US, Mexico, and Canada have had disputes over dairy and tomato subsidies. L

east developed countries argue that global subsidies put their small producers at a disadvantage, as their governments cannot provide similar support, making it difficult for them to compete with heavily subsidized farms in wealthier nations.

Criticism of agricultural subsidies often falls on the United States, which provides significant support to its farmers. However, when measured as a percentage of total farm revenues, countries like South Korea, Japan, China, Indonesia, and the EU offer producer support above the global average of 12 per cent. In contrast, the US, along with Russia, Canada, and Mexico, have historically provided support at or below this average.

Those Raising Questions Do it more

According to data collected by the OECD, smaller countries like Norway, Iceland, and Switzerland top the tables in terms of support as a percentage of gross farm revenue at 57.6 per cent, 54.6 per cent, and 47.4 per cent, respectively. The United States does not even make the top 10 on this measure, with total producer support calculated at 12.08 per cent. Finds AIRRNEWS expert in research. 

In terms of total spending, China, the EU, and the United States comprise the top three. However, China spends almost four times as much as the United States and more than the next three biggest spenders – the EU, United States, and Japan – combined.

Conclusion

While US and China along with the group opposing India most, namely EU also give huge subsidies to its nation members. Question arises, why they ask question India for the same? Asks a progressive farmers union leader while talking to AIRRNEWS expert.  

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Questions:

1. How world eyes on Indian farm productions?
2. Why backlash on India?
3. Why developing nations give subsidies?
4. How strong farmers are? As voters and beneficiaries?
5. How Modi managed to give subsidies to farmers and consumers?