WTO deal will not hit food security programme: Govt

There is an apprehension that once India implements its food security plan completely, it may breach the 10 per cent subsidy cap under the WTO's AoA.

Developed countries like the US and Canada have raised concerns over India's food security plan saying stockpiling of foodgrains under the programme may distort the global agricultural commodity prices.

Under the food security plan, the government is procuring foodgrains from farmers at minimum support price (MSP) and selling at cheap rates to poor people.

Sharma earlier said that India will have the flexibility of providing support to its farmers without the apprehension of breaching its WTO entitlements. It has also effectively led to a commitment from members of the WTO to work on a permanent solution as part of a post-Bali work programme.

The MSP is deemed as support to farmers under the Agreement on Agriculture (AoA). Under the current WTO rules, such support has to be kept within a limit of 10 per cent of the value of production of a product.

The BJP leader also pointed out that there was indication in the interim agreement regarding the permanent solution likely to be reached in the next two WTO ministerial.

He expressed apprehension that with India agreeing to the deal, it has opened its public purchases to international inspections.

Sitaram Yechury (CPI-M) expressed apprehensions on the trade facilitation agreement and said government agreed for legal binding on it in lie of a temporary solution. He wanted to know how trade facilitation would be implemented and at what cost.

Others who participated in the discussion included N K Singh (JD-U), Kanimozhi (DMK), Y P Trivedi (NCP), Bhalchandra Mungekar (Cong),  Naresh Agrawal (SP) and D Bandyopadhyay (Trinamool).