India's Farm Subsidies Challenge: WTO Debate Over Wheat and Rice

Five WTO members, including the US and Australia, allege that India's market support for wheat and rice distorts global trade due to its high market price support levels. India defends these subsidies as necessary for public stockholding and food security, invoking the WTO's Peace Clause as a defense.

In a recent move, five World Trade Organization (WTO) members—Argentina, Australia, Canada, Ukraine, and the United States—have raised concerns over India's alleged excessive market support for wheat and rice.

These countries contend that India's market price support (MPS) for rice has consistently exceeded 87% of the value of production during 2021-23. They argue this distorts global trade, according to a communication sent to the WTO's Committee on Agriculture.

India, however, has invoked the WTO's Peace Clause, allowing developing countries to breach subsidy ceilings under certain conditions, emphasizing the necessity of sustaining food security and public stockholding.

(With inputs from agencies.)