US, five others urge for WTO case against India for rice, wheat subsidies

The US and five other countries are considering a formal World Trade Organization case against India for underreporting rice and wheat subsidies.

Dalton Henry, vice president of policy with US Wheat Associates, says the subsidies have cost US producers $800 million due to a significant increase in production. “That eventually gets dumped onto the world market, and at that point, it suppresses global prices.  That hurts US rice and wheat farmers both because of fewer export markets but because of the depressed price impact.”

In a counter-notification filed last week with the WTO, the US, Australia, Canada, Paraguay, Thailand and Ukraine say India provided rice subsidies that exceeded 78 percent of the value of production and wheat subsidies that exceeded 65 percent.

Henry tells Brownfield the issue has been going on for several years, but peaked at the beginning of Russia/Ukraine war. “They have put in an export ban in place.  At the moment, they’re not interfering with export markets, but that impact of producing excess global supplies still has a significant impact because it suppresses US farm prices.”

Henry says his organization supports a WTO settlement dispute case to ensure India is in compliance with the organization’s requirements that subsidies are capped at 10 percent.

Ranking member of the Senate Ag Committee, John Boozman (R-Ark.) says the evidence is clear that India is blatantly violating WTO and is supportive of a formal case.

Add Comment

Your email address will not be published.


Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!