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Govt considering granting WTO-compatible agri subsidies

In a bid to boost agricultural exports particularly foodgrains, government is considering a proposal for granting WTO-compatible subsidies to reduce the costs of marketing exports of agricultural products.

A note forwarded to the Group of Ministers on the long-term agri-export policy is examining the feasibility of providing such support.

The WTO Agreement on Agriculture permits developing countries to provide support for handling, upgrading and other processing costs as well as to reduce the cost of international and internal transport and freight.

A significant aspect of the WTO provision is that developing countries are not required to undertake any reduction commitments in respect of the export subsidies pertaining to freight and transport.

Official sources said that at present the Agriculture and Processed Food and Product Export Development Authority provides freight subsidy for some agricultural commodities depending on their budgetary resources available.

The sources said that the proposal would facilitate Food Corporation of India and other canalising agencies in providing exporters such support to boost exports.

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