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Indian Agriculture and WTO

I have read Indian Agriculture and WTO from a few sources and now I am thoroughly confused.Can anyone simply explain this topic in a few short paragraphs ?
Will be highly grateful.
One step,One Punch,One Round At a Time.
How you do anything is how you do everything.

PSIR Optional. Aspiring Diplomat.


  • What specifically is your doubt? It is quite tedious for anyone to write paragraphs to explain general doubt.
    Anyway, since you have read from few sources you might now have decent idea. Let me try to make the connection (b/w agri and WTO) a bit simpler.

    WTO institution makes rules to promote free and fair trade among all the countries to promote world economic growth (as the basic ideology behind this is neo-liberalism and free-trade). Now the primary sector of agriculture is a bit complex than others like Manufacturing or Services as few intricacies are involved :

    i) Agriculture sector engages primarily low-income segments, thus promotion of agri exports/price etc is seen as part of poverty elimination by many governments.

    ii) Food Security is a basic necessity, and also a primary responsibility of government. So there should be some mechanism/leeway so that a State is able to provide this.

    iii) There is various 'points of intervention' for a government to ensure that this sector grows well e.g at the point of inputs ( irrigation, infrastructure, fertilizers, seeds), extension ( research, facilitation), finance and security ( insurance, credit, loan waiver, PSL), procurement (purchase of the govt at a specified rate), provision and distribution, export subsidy, tax waiver etc.

    iv)Some of these interventions may distort the price of the food commodity, make export of other countries un-competitive and thus violate 'Fair Trade Regime'.

    v) but then some intervention is of utmost necessity for poverty alleviation and food security - if it is not aimed at export purpose- so there should be a mechanism to reconcile these contrasting objectives.

    So to ensure both the contrasting objectives (of free-trade and food security), WTO groups all those subsidies in few categories like blue box, green box etc. Some of them are treated as Fair and some as distortionary ( Read on WTO site to know how they are classified and the rationale behind it)

    The conflict arises when rich, industrialized, developed countries make excessive subsidies on permitted box and let poor countries suffer in international markets (by making latter's export prices higher). Poor countries have disadvantage in providing permitted infrastructural subsidies because they are poor.*
    There used to be continuous negotiation between these two groups. It all depends upon which group has more leverage to make its demand acceptable.
    Now a days, developed countries feel bilateral/multilateral mechanism more useful for them than this WTO thus rise of so many trade-groupings.

    * Not sure about this. Moreover I have very superficial knowledge on this so let someone else provide good viewpoint.
    CSE '16 : Interview
  • hii @GentleGiant6
    kaise ho bro
    1 green box--> for RnD -------- NO LIMIT
    2 blue box----- FOR ALLIED SECTOR--- NO LIMIT eg animal husbandry
    3 amber box---- limitation---- because it directly impacts the amt of production
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