Food security ordinance may invoke WTO compliance issues

The recently promulgated National Food Security ordinance, which aims to provide 5 kg of food grains per person per month at subsidised prices under the targeted public distribution system, might be in violation of the global trading rules on agriculture under World Trade Organization (WTO). According to trade economists and experts, even if the ordinance is aimed at giving subsidies to people living below the poverty line for consumption purposes, it nevertheless tantamount to subsidies, which are otherwise prohibited under WTO norms, which is commonly known as 'trade distorting subsidies' or 'Amber Box' subsidies in trade parlance. Read More