iGrain India - The United States has once again raised concerns at the World Trade Organization (WTO) over India's subsidies on wheat and rice.
The US Trade Representative (USTR) has questioned the transparency and accuracy of the support, input subsidies, and market support prices provided by the Indian government to its wheat and rice producers. This issue has been a point of contention before, with limited success for the US in pushing India to make changes.
In its notification to the WTO, the US expressed doubts about the correct level of support being offered by India, and this complaint has gained backing from other major wheat-exporting countries like Argentina, Australia, Canada, and Ukraine.
However, Russia and European Union members have not yet joined the complaint. The US Wheat Association, which has been vocal in its criticism, has argued that India's subsidy policies violate WTO rules and hinder progress on agricultural trade negotiations.
The US claims that India is refusing to negotiate on the level of subsidies and stock management, which complicates discussions within the WTO framework.
The US Wheat Association has emphasized the importance of pressuring India to comply with WTO regulations to ensure a fair trading environment.
India, for its part, has consistently defended its subsidies, arguing that its priority is to ensure food security for its population. India has stated that no compromise will be made on this issue, signaling its determination to maintain these subsidies despite external pressure.
The ongoing dispute highlights the broader tensions in global agricultural trade and the challenges of balancing domestic policy objectives with international trade rules.