India's strong stand in WTO, defended the decision to ban wheat and rice exports
At the World Trade Organisation, India has defended its decision to ban the export of wheat and rice. India says that this decision has been taken for the betterment of weak and poor people.
India has defended its decision to ban the export of wheat and rice at the World Trade Organization (WTO) meeting. India has shown this stand after some member countries expressed concern over the decision to ban the export of rice and wheat.
At a meeting in Geneva last week, the US and the European Union questioned the decision, saying it could adversely affect global markets.
In May, India banned the export of wheat to increase domestic availability. This month India also banned the export of broken rice. Apart from this, 20 per cent export duty was imposed on non-basmati rice to boost domestic supply amid fall in paddy area in the current kharif season.
Decision taken in view of domestic market
Defending the decision, India clarified that the ban on export of broken rice was imposed keeping in view the domestic market. Most of this rice is used in poultry feed. There was a tremendous growth in the export of cereals in the recent months. This added to the pressure on the domestic market.
India said it was necessary to curb exports due to food security concerns in the case of wheat. India has also said that these measures are temporary and are being continuously monitored. Senegal, a major importer of India's broken rice, urged India to keep trade open during this difficult time to ensure food adequacy, an official said.
Use of WTO Peace Clause
In the meeting, Thailand, Australia, Uruguay, USA, Australia, Canada, Brazil, New Zealand, Paraguay and Japan requested for consultation with India regarding food programs to avoid trade disputes. Let us tell you that for the third time in April, India has used the WTO Peace Clause on the support price given to rice farmers. India informed the WTO that it has used the WTO Peace Clause to provide additional assistance to rice farmers for the marketing year 2020-21 to meet the household food security needs of its poor population.
Let us tell you that most member countries of the WTO refrain from challenging any violation of the prescribed subsidy limit given by a developing nation at the dispute settlement forum. Subsidy in excess of the prescribed limit is considered against trade practice. For developing countries like India, this limit has been fixed at 10 percent of the food production value. India has strongly advocated to find a permanent solution to this issue, but so far no progress has been made.