In the balance The National Food Security Act vis-Ã -vis the WTO agreement on agriculture

Abstract

This piece analyzes the implications of the National Food Security Act for India's commitments under the WTO Agreement on Agriculture (AoA) in the context of widespread concern that they might be mutually incompatible. An analysis of support to rice and wheat for the period 1995-2012 suggests that the current scale of operations are at levels implied by the NFSA and that it is possible to leverage existing provisions in the WTO AoA to accommodate these within India’s commitments under the WTO AoA. While India should negotiate to retain the flexibility afforded in the Agreement and argue on specific provisions, it might not be necessary to seek special protection to enable the NFSA. Regardless of the WTO AoA, India should revamp and rationalize existing arrangements to establish a more nimble, transparent and cost effective food management system. This is desirable for its own sake and would support India's efforts to adhere to the AoA, in letter and in spirit.