Allow govt-to-govt food stock export, India urges WTO
NEW DELHI: India has moved a proposal at the World Trade Organisation (WTO) to allow government-to-government export of publicly held food stocks, arguing the step would help alleviate a global food crisis amid record inflation, and noting that the World Food Programme failed to deliver critical supplies to nations in distress.
Over 160 countries are taking part in the ongoing 12th ministerial meeting of the WTO at Geneva to discuss a range of issues related to cross-border trade and tariffs.
Commerce and food minister Piyush Goyal, making his speech late Monday night at the meet, made a strong pitch and moved a proposal for lifting of restrictions on export of state-owned food stockpiles, saying some of the world’s poorest nations were facing hunger and shortages. “I fail to understand what is it that is holding back the WTO members from also allowing government-to-government purchases for humanitarian purposes in the event of a problem, food security being threatened and all of that could be on very transparent terms,” Goyal said.
“We have the stocks in our public stockholding programme to be able to help friendly neighbours, nations in distress, other developing nations, least developed countries, the poor and vulnerable sections of society.”
Soaring food prices following Russia’s invasion of Ukraine have roiled many economies, especially poorer net importers of food items, as disruptions add to existing strains on global supplies of grains, edible oil, and other foodstuff.
The WTO doesn’t allow export of food items procured by governments under public stockholding programmes, which India has sought to be lifted at various forums. India procures up to 110 million tonnes of foodgrains annually.
“In April, Prime Minister Narendra Modi, during his meeting with US President Joe Biden, had said India could send supplies to countries in need if WTO guidelines were to allow shipments from state granaries. I heard that my neighbour Sri Lanka has been going through a severe crisis. Other countries in our region are also facing problems. Bangladesh needs food supplies, Bhutan needs food supplies,” he said.
“We have put in a text which we have suggested should be brought into the (proposed) text because we believe that the World Food Programme by itself has hardly contributed to world food security in any significant way, (and) there are limitations of the programme,” he said.
India is also pushing for a new method to calculate food subsidies for a permanent solution to its public grain stockpiling programme, a prickly issue, people aware of the development said. According to current WTO rules, a member country’s food subsidy is capped at a ceiling of 10% of the value of production based on 1986-88 prices. India will propose amendments in the formula to calculate the food subsidy limit with support from G33, which, despite its name, is a grouping of 48 nations.
“India seems to be now pushing for at least allowing exports of public stocks on a government-to-government basis, if not a total removal of curbs on trade in its public stockholding programme. Given the stance of the WTO, chances are slim India’s proposal will go through,” said Arya Mohan, a former researcher with India’s negotiating team.