K C Tyagi
India The issue of giving Minimum Support Price (MSP) to the farmers in India is very serious. All the parties of the country do politics on this because this issue is directly related to the farmers. The member countries of the World Trade Organization (WTO) accuse India of affecting the food security of other countries due to the MSP. He also has a problem with the subsidy given to the needy in the country.
In many WTO meetings, the US and European countries argue that by giving subsidies, farmers of India produce more food grains, then this grain is exported to the world markets at a cheaper price. This has an adverse effect on the farmers of other countries. In a country like India, 80% are small and marginal farmers. MSP has proved very beneficial for them. Under the MSP itself, the Public Stock Holding Program Scheme (PSH) of public storage is run in the country, through which the poor get free or very cheap food grains. This not only curbs the exorbitant rise in the prices of food grains, but also helps in ensuring food security.
According to the WTO’s Agreement on Agriculture (AOA), developing countries like India can give a maximum subsidy of 10 per cent on the production cost of crops. This subsidy is also calculated according to the prices of the year 1986-88. On the basis of criteria, developed countries often question the subsidies given to farmers in India. In a WTO meeting in Geneva in June 2022, the US and European countries protested against agricultural subsidies given to Indian farmers. He also had a problem with the annual support of Rs 6,000 given to the farmers.
In the WTO meeting in the year 2018-19, countries like Brazil, New Zealand, Australia, America and Canada had alleged that India has given more subsidy to the farmers during paddy procurement than the prescribed limit. These countries also opposed MSP for wheat and other crops. Developed countries have been continuously pressurizing the WTO and other international forums to reduce or eliminate the subsidies given to farmers in India. However, America, Canada and other European countries, which have less cultivable land than us, give more subsidies than us. Farmers in America earn more than India, yet it gives subsidies of more than $ 61,000 per farmer annually. On the other hand, India is able to subsidize its farmers for less than $300 a year.
Today, India being an emerging economy, has its own challenges. India has come at number seven among the exporting countries of agricultural products. Our agricultural exports had crossed $50 billion during 2021-22. Today India accounts for 45 percent of the world’s total rice exports. We are number one in milk production. We have also become the second largest producer of fish in the world. India has become the largest sugar producer, overtaking Brazil. In 2020-21, 560 lakh tonnes of rice was exported all over the world, so during Corona, India gave 580 lakh tonnes of food grains to its 80 crore people for free. That is, India distributed free rice to its people more than the amount of rice exported in the whole world.
At present there are about 14.5 crore farmer families in India, who have their own problems. India cannot afford to cut or eliminate subsidies and government support to its farmers to please the WTO or any other international body. In such a situation, India should make its stand very clear in this matter that it will not make any compromise to protect its sovereignty and the interests of its citizens.
(The author is a former MP)
Disclaimer: The views expressed above are the author’s own.