India Prioritises Resolution On Grain Stock-Holding Issue At WTO

New Delhi, Nov 30 (KNN) India has voiced its opinion to first find a permanent solution to the issue of public stockholding of food grains at the World Trade Organisation (WTO) before negotiation on other issues, reported FE.

At the WTO Mini-ministerial on meeting on agriculture which was held virtually on India’s call late last night, Minister of Commerce and Industry Piyush Goyal put forward New Delhi’s approach to the issue saying that public procurement and shockholding of food grains serves the twin objective of food security and income support.

“India has made it clear that no new issue in the agri sector can be discussed in the WTO before finding a permanent solution to a mandated issue of the public stockholding,” the government official, who did not wish to be named told FE.

The Cairns Group of agricultural exporting countries which has 19 members including Argentina, Australia, Brazil, Canada, Chile and Colombia have been seeking to curb domestic support that India provides.

According to them the procurement at fixed prices and public stock of grains distorts markets. As minimum support price acts as a price barometer for Indian rice and wheat for exports it keeps their global prices suppressed. At the mini-ministerial Cairns group has the backing of some other countries on the issue taking their total to 28.

India also reiterated that its MSP and public distribution programmes keeps global agri prices stable. India’s food grain production is 330 million tonnes and if even 10% of that demand comes to the global trade it will destabilise the markets and lead to prices shooting up.

According to the Food and Agriculture Organisation of the United Nations the global trade in cereals in 2023-24 is expected to be 460 million tonnes.  

(KNN Bureau)