The December meeting of the WTO at Buenos Aires is likely to witness some heated debates between India and some of the developed nations on eliminating farm subsidies.
India is under pressure from its farming community that wants Aggregate Measurement of Support (AMS) by developed nations, eliminated altogether. The Peace Clause in itself is quite complicated and does not allow farmers to trade MSP assured crops in the international markets. India supports 26 crops with an assured price of procurement, along with subsidy inputs.
The developed nations on the other hand are pushing for a solution that limits and quantifies subsidies to 10 per cent of the GDP. And recently the situation came to a head between China and the US.
At the meeting, India's strategy will agree to a continuance of the Peace Clause, even as it pushes for a permanent solution to public stockholding as a strategy.
Anilesh S Mahajan