NEW DELHI, May 5: Dismissing allegations made against the government on social media, the Commerce Ministry today said India has not signed any agreement in the WTO which could lead to closure of ration shops and discontinuation of farm subsidies.
It said the Department of Commerce has come across a Tamil video posted on Facebook where activist Thirumurugan Gandhi has made factually incorrect statements regarding signing of an agreement to stop distribution of rice and other provisions through public distribution system, discontinuation of agricultural subsidies and allowing import of food items.
“This is completely wrong. No such agreement was signed. There were no proposals for closure of ration shops, for discontinuing subsidies to farmers or for allowing imports of food items,” the ministry said in a statement.
The allegations about the government stopping procurement of rice/food products and subsidies to farmers is also “completely wrong,” it added.
It said Gandhi’s claim that the agreement has been kept secret is “not only baseless”, it also reflects upon the knowledge of the speaker about the procedures of the World Trade Organization (WTO).
The tenth ministerial conference of the WTO in Nairobi has resulted in decisions in the area of agriculture and development and some issues relating to the least developed countries.
“The WTO rules do not bar public procurement for food security purposes. As far as the limit of support is concerned, India has been working to have the WTO rules in this regard updated,” it said.
“This is to ensure that we are not constrained by the WTO rules in making public procurement in future also,” it said.
The ministerial decision on the issue of public stockholding for food security purposes was achieved mainly due to the efforts made by India.
The ministry said it has ensured that no country will ever be able to challenge India’s procurement/public food distribution programmes for violation of the relevant WTO rules.
At the Nairobi conference, the government has further ensured that the WTO will have to continue to work on this issue, even if there is no progress on other issues under negotiation, it said.
India is conducting minimum support price scheme for distribution of rice and other food items through the PDS via FCI and the agencies of states, it said.
“This system will in no way be impacted by any of the Decisions taken at the WTO ministerial conference,” it said.
Similarly, it said, there will be no impact of the decisions on the procurement from the farmers at the MSP, which India will continue to announce as before.
The decision does not, in any way, affect the ability of FCI to procure and store foodstuffs in its godowns, it added.
“The statement about stoppage of subsidies to farmers lacks any substance. No agreement was signed that would require the Indian government to stop giving electricity subsidy, fertiliser subsidy,” it said.
Protecting India’s agricultural sector is a priority with the government in trade negotiations.
At the Nairobi meeting, India also sought and obtained another decision on a Special Safeguard Mechanism for agricultural products for developing country members.
The SSM is intended to help developing countries protect their agriculture sector from the effects of a surge in imports of agricultural products.
India negotiated a decision which recognises that developing countries will have the right to have recourse to an SSM as envisaged in the mandate of the Doha Round of trade negotiations, the commerce ministry said.
“Negotiations for an SSM are to be held in dedicated sessions and the WTO General Council has been mandated to regularly review progress of these negotiations,” it said.
Agriculture is a priority with the government and it is also taking a number of steps to ensure the welfare of the farmers.
The government, it said, is fully committed to ensure that the subsidies reach the intended beneficiaries in the most efficient manners.
Government is also ensuring that the vagaries of nature and other calamities do not affect our farmers through recently introduced Pradhan Mantri Fasal Bima Yojna, it said, adding that there are many other positive steps taken by the government to protect the interests and for the welfare of our farmers. (PTI)
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