Ukraine and four other countries are challenging India's wheat production subsidies at the WTO

Published 2024년 11월 14일

Tridge summary

India is facing criticism from the US and other countries, including the National Wheat Growers Association, for exceeding the subsidy limit set by the World Trade Organization (WTO), providing subsidies that exceed 10% of the total cost of crop production. The excessive subsidies, particularly for wheat, have led to overproduction and an imbalance in the market, discouraging farmers from growing other crops. This has resulted in large government stocks of wheat, which India has been known to dump on international markets, disrupting markets and causing harm to farmers in exporting countries. The US has filed three counter[/INST] notifications at the WTO against India's rice and wheat subsidies, highlighting India's breach of its WTO commitments and calling for India to become a responsible trading partner.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to World Grain, in accordance with its obligations to the WTO, India can provide subsidies in the amount of no more than 10% of the total cost of crop production. In FY 2021/22 and FY 2022/23, as noted by the applicants, the level of support significantly exceeds this limit. India's wheat support schemes encourage overproduction and discourage farmers from growing other crops, the submission said. This led to huge government stocks of wheat, which the Indian government sometimes dumped on international markets. The disruptions it causes hurt farmers in exporting countries and their customers. “The Indian government continues to breach its commitments and its refusal to compromise on support levels and government stocks is blocking any progress in WTO agricultural negotiations. It is important to continue to highlight this issue with the hope that it will eventually lead to India becoming a responsible trading partner.” said US Wheat Associates ...

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