India hopeful of solution on food security issue at WTO

Stressing that food security is a sovereign right, India on Wednesday expressed hope that World Trade Organization members would understand its position and come up with a solution on issues concerning public stock holding of foodgrain.

"We hope that the WTO member countries understand the position India has taken. It is not just for India, but in the interest of many countries which have public stock of foodgrain.

"These are issues of sovereign right of a country," said Commerce and Industry Minister Nirmala Sitharama.

"We would like WTO to address them and I am hopeful.

“Our expectation is that we get a permanent solution for the public stock holding of foodgrain.

“It is important for my national food security," she told reporters marking the 100-days of the new government.

The WTO has resumed work at Geneva from September 1 after a month long vacation.

India had decided not to ratify WTO’s Trade Facilitation Agreement, which is dear to the developed world, without any concrete movement in finding a permanent solution to its public food stock-holding issue for food security purposes.

Sitharaman said the country is not isolated on the issue and several countries are understanding and supporting India's position that it took in July.

"That thought must be removed from mind that people are irate, people think we are isolated.

“On the contrary we now have more people understanding India's position, favourably to India. . . I don't think anyone is irate anymore even if they were earlier.

“Today the environment is far more in favour of India," she added.

She said that during her recent visit to China,

its Trade Minister was "able to see where we have come from and what arguments we have placed".

A series of meetings are expected this month in Geneva on agri related issues.

Sitharaman said India has put several options on the table and now it is up to the WTO members to discuss them and come to a conclusion.

"We had given a lot of alternatives.

“Probably there wasn't enough time for the WTO to sit over these proposals and come back with the response then (in July).

“But I would certainly hope that those proposals and even the new ones that India is offering, all will be taken on board and WTO will engage with us.

“We are also talking to a number of members to explain our position," she added.

New Delhi has asked WTO to amend the norms for calculating agriculture subsidies so that the country could continue to procure foodgrains from farmers at minimum support price and sell them to poor at cheaper rates without violating the norms.

The current WTO norms limit the value of food subsidies at 10 per cent of the total value of food grain production.

However, the quantum of subsidy is computed after taking into consideration prices that prevailed two decades ago.

Sitharaman reiterated that India is in favour of TFA but ‘I want WTO to engage with us, talk to us to get a solution’.

India is already taking steps towards improving environment in the country for trade facilitation and ‘therefore, with the nation's intent and interest being very pro-trade facilitation what can be the reservation we have regarding signing the WTO TFA?

‘Yes, we want to go ahead with the agreement,’ she said.

TFA aims at easing custom norms, reducing paper work and documentation and cutting transaction cost for traders.