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A thread on How the Congress led UPA Government laid a trap for Indian Farmers at WTO which would have eventually ended MSP and Hampered food security of India.
And how it was undone by BJP led NDA government.
#FarmersBill
#FarmerBill2020
#ModiWithFarmers
And how it was undone by BJP led NDA government.
#FarmersBill
#FarmerBill2020
#ModiWithFarmers
There are 3 types of subsidies classified under WTO’s Agreement on Agriculture under Domestic support.
1. Green Box subsidies- These are subsidies which do not distort market. Like PM-Kisan, Income support, Insurance building infra etc.
There is no limit to these subsidies.
1. Green Box subsidies- These are subsidies which do not distort market. Like PM-Kisan, Income support, Insurance building infra etc.
There is no limit to these subsidies.
2. Blue Box Subsidies- These subsidies are production limiting subsidies. These put a bar on production. These also don’t distort markets. So there is no limit to these either.
3. Amber Box subsidies- These subsidies eventually lead to market distortion.
These are also allowed within limit under De-Minimus provisions. This limit is 5% for developed and 10% for developing countries.
MSPs may come under this category if they cross De-Minimus limits.
These are also allowed within limit under De-Minimus provisions. This limit is 5% for developed and 10% for developing countries.
MSPs may come under this category if they cross De-Minimus limits.
In the year 2013, the UPA government agreed on ‘Bali Package’ .
The Dalal Newspapers reported it as a Win for India as it was election season.
But was it really? https://www.thehindu.com/news/national/indias-stand-prevails-in-bali/article5430252.ece
The Dalal Newspapers reported it as a Win for India as it was election season.
But was it really? https://www.thehindu.com/news/national/indias-stand-prevails-in-bali/article5430252.ece
India has been asking for removal of this 10% limit for a long time. This limit is on total agricultural production.
There are limits on public stockholdings too.When India Passed food security act, the stockholding was bound to increase. So these limits threatened food security
There are limits on public stockholdings too.When India Passed food security act, the stockholding was bound to increase. So these limits threatened food security
So, not only food security but also MSP was under threat. With MSP and public stockholding increasing every year, the government was under pressure to convince WTO to increase these limits.
But no one cared.
But no one cared.
The opportunity for India came in the year 2013 at WTO’s Bali summit. Here a new agreement called Trade facilitation agreement was being negotiated.
Our diplomats saw this as an opportunity to pressurise developed world on this issue.
But Congress led UPA government bowed down.
Our diplomats saw this as an opportunity to pressurise developed world on this issue.
But Congress led UPA government bowed down.
They agreed to Bali package which was a serious compromise.
Under the Bali package WTO guaranteed to ‘Discuss’ India’s concern and was ready to give 4 years to India to ‘Adjust’ its subsidies and stockholding.
Under the Bali package WTO guaranteed to ‘Discuss’ India’s concern and was ready to give 4 years to India to ‘Adjust’ its subsidies and stockholding.
So, there was no guarantee that WTO will heed to India's demand in these 4 years. UPA had set a Time bomb for Modi government which would have exploded in 2018, right before the elections. No MSP, No food security bill.
Congress was ready to throw farmers under the bus to regain power in 2019.
But, PM Modi had other plans. The first thing they did was to Veto TRade facilitation agreement. https://www.business-standard.com/article/economy-policy/india-vetoes-wto-trade-facilitation-deal-114070301095_1.html
But, PM Modi had other plans. The first thing they did was to Veto TRade facilitation agreement. https://www.business-standard.com/article/economy-policy/india-vetoes-wto-trade-facilitation-deal-114070301095_1.html
India’s stand was clear. We want exemptions from these limits till the ‘Talks’ on India’s agricultural concerns are not completed and agreed upon by India.
So now, India has exemptions from these limits, no threat to food security and MSP for Indefinite period.
So now, India has exemptions from these limits, no threat to food security and MSP for Indefinite period.
Till India reaches new agreement on how subsidies are calculated, stockholding and various other issues, we can continue to provide support to farmers.
India ratified TFA in 2016 only after the time period was made indefinite.
India ratified TFA in 2016 only after the time period was made indefinite.
Next time when this person says something like this 
, someone please educate him how his party was going to Kill MSP altogether. https://www.livemint.com/news/india/rahul-gandhi-lashes-out-at-pm-over-msp-apmc-11607147497564.html
, someone please educate him how his party was going to Kill MSP altogether. https://www.livemint.com/news/india/rahul-gandhi-lashes-out-at-pm-over-msp-apmc-11607147497564.html
Also, do remember, these protests are not about MSP. There are many things involved . Thread... https://twitter.com/aayushnarayan/status/1335992309263912961?s=20
You can read here why it was yet another Bad deal by International Lobbyist government which Ruined India for 10 years. Although this article won’t blame UPA or Anand Sharma for obvious reasons. https://scroll.in/article/671157/why-india-is-right-to-back-out-of-wtos-landmark-bali-package
