Taking a strong stand on the need to finding a permanent solution on the issue of public stock-holding for food security purposes at the World Trade Organisation, Commerce and Industry Minister Suresh Prabhu has emphasised that it must be a part of the outcomes achieved at the Ministerial Conference in Buenos Aires in December.

Speaking at an informal WTO Ministerial gathering of 35 WTO member countries in Marrakesh, Morocco, early this week, the Minister said that a permanent solution on public stock-holding was of tremendous importance not only to India but also several other developing countries, according to an official release.

“The Minister said that a solution on the issue would give a strong signal of determination to end hunger and achieve food security, as mandated in the UN Sustainable Development Goal 2,” the release added.

For countries such as India with a large percentage of population dependent on agriculture, it is important that subsidies extended for public stock holding programmes in the form of minimum support prices to farmers do not face penalties at the WTO.

At present, such subsidies are classified as trade distorting and are subject to a cap of 10 per cent of the production value.

The peace clause negotiated by India after the Bali Ministerial meet does offer protection against penal action in case subsidies breach limits, but the tough conditions attached to its use makethem unattractive.

Prabhu, who led the discussions on behalf of the developing world and reiterated commitment to the Doha Round, also pointed out that any meaningful reform in agriculture must first seek to reduce the disproportionately large subsidies of the developed countries.

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