Speaking at the IISS-Citi India Global Forum here, Baru argued that since domestic consumption of food is rising without an increase in supply, the country should welcome cheap food imports. Underlining that he was speaking in his personal capacity and not as a government spokesman, Baru said, “We may not be able to make the same argument against the US subsidies. It would be in the interest of India to favour continuation of farm subsidies by the US and the European countries so that import prices remain low.”
20 April 2008: Financial Express
New Delhi, Apr 19 The outgoing media advisor to Prime Minister Manmohan Singh, Sanjaya Baru has called for softening of India’s stance on reduction of farm subsidies by the US and the European Union at the World Trade Organisation forum, citing rising food prices.
“Since India has been a net food importing country for the past few years and is expected to remain so in the near future, cheaper imports of agriculture products would help in cooling inflation,” Baru said.
But the Union commerce ministry says it is still too early to even contemplate a change in strategy as it did not want any “bad decision” to “haunt” them for having caused harm to future generations. Commerce and industry minister Kamal Nath has been strongly conveying India’s position at multilateral WTO discussions, demanding that the US and the European Union drastically cut their trade-distorting agricultural subsidies.
Speaking at the IISS-Citi India Global Forum here, Baru argued that since domestic consumption of food is rising without an increase in supply, the country should welcome cheap food imports. Underlining that he was speaking in his personal capacity and not as a government spokesman, Baru said, “We may not be able to make the same argument against the US subsidies. It would be in the interest of India to favour continuation of farm subsidies by the US and the European countries so that import prices remain low.”
The International Food Policy Research Institute recently reported that the US might bring down its farm subsidies from $13 billion in 2005 to less than $8 billion this year.
Nath is expected to meet his counterparts at the Geneva headquarters of the WTO in mid-May to try for a breakthrough in the Doha Round talks, which started in 2001. The talks had broken down twice due to major differences between the developed and the developing nations over farm subsidies and tariffs.
Rising food prices have already forced several countries including India to lower import duties on food items. India has allowed duty free import of crude edible oil and corn, cut import duty on refined edible oil to 7.5% and banned exports of rice and pulses.
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