Millennium Post

India opposes new US proposal on food stockholding in developing countries

India and other members of the G-33 grouping have opposed a new US proposal for a permanent solution to the factious issue of food stockholding for food security in developing countries at the second informal meeting at the WTO this year.

India said the US proposal may result in an outcome where countries are advised as to what kind of food security programmes they should adopt, which is not part of the existing mandate. In trying to address the food security issue vis-a- vis the proposal, one of the outcomes could be a decision on public stockholding whereas the mandate is the other way round, India argued.

The G-33 countries - led by India and including China and the Philippines - want public stockholding for food security purposes to come under the 'Green Box'  subsidies that cause no or minimum trade distortion.

The G-33 debated the US proposal on Friday's second dedicated session this year on the issue at the Geneva-based World Trade Organisation (WTO). The proposal was among many others to clinch a deal. The proposal comprises three main elements - reviewing efficacy and trade effects of existing food security programmes and the extent to which they meet their goals; evaluating the real and potential problems encountered in implementing food security programmes because of constraints in the existing WTO rules; and drawing from the best practices and recommendations on food stockholding.

Best practices in food stockholding would include programmes in states that are most economical, targeted and effective and the ones that are not trade distorting and have enhanced transparency.

Vigilance needed on food inflation: RBI

RBI Governor Raghuram Rajan on Sunday said the government and the central bank need to be more vigilant about the food price situation as the unseasonal rains have damaged some crops. “We have to be more careful in food management and government has repeatedly said that it is looking at food prices,” he said. PTI
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