Agriculture and Farmers’ Interests at WTO MC13
Despite pressures, particularly from developed nations to reduce domestic agricultural support and grant them greater market access for their farm produce, India successfully resisted lobbying efforts at the Abu Dhabi Ministerial Conference (MC13) of the WTO. The conference concluded on March 2, 2024, after a two-day extension from the originally scheduled closing date of February 29.
The credit for withstanding international pressures to safeguard Indian agriculture and the interests of Indian farmers goes to the Narendra Modi government and Commerce Minister Piyush Goyal. Despite criticism from global powers for its firm stance, highlighted in a Reuters report quoting European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis, India prioritized its national interests over building a global consensus that would have favored developed nations. While Dombrovskis expressed disappointment over the lack of consensus on fisheries, agriculture, and broader reforms, India remained steadfast in protecting its interests.
Ensuring MSP for Farmers
Today’s India has undergone significant political and economic changes compared to a decade ago when it consented to the “peace clause” at the Ninth Ministerial Conference (MC9) in Bali in December 2013.
This clause provided crucial support for India’s farmers through schemes like the minimum support price (MSP).
It was agreed that the “peace clause” would serve as an interim solution to public stockholding (PS) for food security purposes until a permanent solution was found by 2017 (the 11th Ministerial Conference or MC11). The understanding was that the “Peace Clause,” essential for India’s MSP program, would remain in effect until MC11 or 2017. Then-commerce minister Anand Sharma represented India at the conference. As all decisions at the WTO are consensus-based, India agreed to forego the legal protection of the “peace clause” to sustain its MSP program during MC9 in Bali.
Had the Modi government not intervened immediately after assuming power in May 2014, India would have faced significant challenges, if not outright impossibility, in running its MSP program, which is crucial for Indian farmers. The Hindustan Times extensively reported that during MC13 (February 26 to March 2, 2024), agriculture was the top priority for both India and Europe, where farmers are protesting over issues such as subsidies and market access. The most critical aspect of agriculture for India and its partners, involving nearly 80 countries, was negotiations related to public stockholding (PSH) for food security. PSH is crucial for two reasons: firstly, it involves the procurement of food grains from farmers to assure them of MSP for their produce if market prices fall, and secondly, grains are procured to provide free dry rations to over 810 million poor people under the Prime Minister Garib Kalyan Ann Yojana (PMGKAY), besides fulfilling obligations to distribute highly subsidized food items under the National Food Security Act (NFSA).
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