India giving rice and wheat production vast support, U.S. tells WTO.

India is supporting its rice and wheat farmers with payments that are far higher than the amounts allowed by the World Trade Organization, the United States said in a statement published by the WTO on May 09. It appears that India provides market price support (MPS) for wheat and rice vastly in excess of what it has reported to the WTO. India’s apparent MPS for wheat appears to have been over 60 percent of the value of production in each of the last four years for which India has notified data. Its apparent MPS for rice appears to have been over 70%. It has won preliminary WTO backing for a system of public stockholding of farm produce for food security purposes, but the United States and others have been wary of its plans, warning that payments which encourage production could lead to oversupply and potentially a spillover onto world markets. Anything over 10 percent would break WTO rules. India has made reform of agricultural subsidies a major negotiating issue at the WTO in the past five years.