Question

 

Examine the implications of WTO agreements on Indian agriculture. Also, provide an overview of India's trade policy related to agricultural commodities.

13 Sep 2025
Answer :
Word Count : 1180
The World Trade Organization (WTO) agreements have had significant implications for Indian agriculture, impacting trade, domestic policies, farmer incomes, and food security. India, as a developing country with a large agrarian economy, faces both opportunities and challenges in implementing WTO agreements, especially the Agreement on Agriculture (AoA), Sanitary and Phytosanitary (SPS) measures, and Technical Barriers to Trade (TBT). The Agreement on Agriculture, introduced during the Uruguay Round and enforced from 1995, is the most critical WTO agreement concerning Indian agriculture. The AoA aims to reform global agricultural trade by promoting market access, reducing domestic support, and cutting export subsidies. The primary pillars of the AoA—market access, domestic support, and export subsidies—have directly challenged India’s traditional agricultural policies, which were designed for food security and rural livelihood support rather than export competitiveness. In terms of market access, the AoA requires reduction of tariffs and elimination of non-tariff barriers (NTBs). India had traditionally imposed high tariffs and quantitative restrictions on agricultural imports to protect domestic farmers and ensure food self-sufficiency. However, under WTO, India had to commit to binding tariff rates and gradually reduce them over time, making domestic markets more open to global competition. This has led to concerns that cheap agricultural imports from highly subsidized producers like the European Union and the United States could flood the Indian market, adversely affecting small and marginal farmers who cannot compete with such low prices. The domestic support pillar has posed a significant challenge for India. The AoA classifies domestic subsidies into Amber, Blue, and Green boxes. Amber box subsidies (which distort production and trade) are subject to reduction commitments, while Green box subsidies (non-trade distorting) are exempt from limits. For India, a large proportion of its agricultural support comes in the form of price support and input __________ _________ _________ ______ ___ _______ _________ ____.
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