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India has said it will work for a constructive outcome of the forthcoming World Trade Organisation ministerial meet in Bali, but would not compromise on food security for its poor.
Government procurement of foodgrains for public distribution system under Minimum Support Price (MSP) mechanism cannot be diluted, Commerce and Industry Minister Anand Sharma said in a meeting with outgoing WTO Director-General Pascal Lamy and DG-Designate Roberto Azevedo in Paris on Thursday.
India, as part of the G-33 group of developing countries at the WTO, has proposed that acquisition of food stocks by developing country members with the objective of supporting low-income farmers should not be counted as trade distorting support.
The group has also said that such support, which includes public procurement of food at MSP, should not be part of the aggregate measurement of support subjected to disciplines, failing which penalties are imposed.
Without the flexibility, India could breach the limit of subsidies it is allowed under the present rules and be penalised once the proposed Food Security Bill is in place.
The G-33 proposal is part of the package that WTO members hope to reach an agreement on at the Bali Ministerial. An agreement on Trade Facilitation pushed by developed countries that would include commitments to modernise customs facilities and expedite movement of cargo, is also part of the package.
While recognising the importance of trade facilitation and upgrading infrastructure at borders, Sharma underscored the need for addressing the concerns of food security outlined in a proposal presented by G-33 countries.
“This is essential to protect the interest of the subsistence farmers in developing countries and also the responsibility of the state for assuring food security for the poor and vulnerable section of the society,” Sharma said.
As the deadlocked Doha round of the WTO is not showing any sign of movement, WTO members are trying to get an agreement on a handful of issues in Bali and then move on to the other issues.
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