Photo credit: U.S. Wheat Associates.
This week, the Office of the U.S. Trade Representative (USTR) filed its fourth counter notification on India’s rice and wheat subsidies to the World Trade Organization’s (WTO) Committee on Agriculture
This is the latest in a series of U.S. counter-notifications showing India is not transparent about the true level of wheat and rice support it provides.
“We appreciate the USTR’s continued efforts to highlight India’s trade-distorting wheat subsidies,” said Dalton Henry, USW vice president of policy and communications. “While we understand the desire to support farmers when needed, India’s government continues to be out of compliance with its WTO commitments. As a result, India’s large price support program continues to have a negative impact on world wheat markets.”
Support Schemes
India’s wheat support schemes incentivize overproduction and discourage farmers from growing other crops. This leads to massive public stocks of wheat that the Indian government has at times dumped onto international markets. The disruption it causes harms farmers in exporting countries and their customers, who benefit from stable markets.
Under its WTO commitments, India may provide subsidies equal to no more than 10% of the total value of crop production. In marketing year 2023/2024 covered in the counter-notification, the United States demonstrated through India’s own data that its support level far exceeds that limit.
U.S. Wheat Associates has stated that the organization is committed to working with the USTR and other government officials to address this challenge and ensure U.S. wheat farmers can fairly compete in the global marketplace.
Read more from U.S. Wheat Associates here.