India's Agri-Subsidy and WTO Norms

Balancing India's agricultural subsidies with World Trade Organization (WTO) norms involves ensuring support for farmers while complying with international trade rules. This is essential for safeguarding domestic agriculture and maintaining global trade relations.

WTO Norms and Challenges

  • De Minimis Limits: The WTO's Agreement on Agriculture (AoA) allows developing countries to provide subsidies up to 10% of the total value of agricultural production, known as the de minimis limit. However, India has been accused of exceeding these limits, particularly in the case of rice and sugarcane subsidies.
  • Calculation Methods: The calculation of subsidies using outdated base years (1986-88) leads to ....
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Economic Development