INDIA URGES WORLD TRADE ORGANISATION FOR PERMANENT SOLUTION TO PUBLIC
STOCK HOLDING FOR FOOD SECURITY
PUBLIC STOCK HOLDING programmes are used to purchase, stockpile and distribute food to people in need. While food security is a legitimate policy objective, some of these programmes are considered to distort trade when they involve purchases from farmers at prices fixed by the governments, known as ” minimum supporting preces” in india. India has been seeking amendments in the formula to calculate food subsidy cap. De minimis is minimal amounts of domestic support that are allowed even though they distort trade.As an interim measure, WTO members at Bali ministerial meeting (2013) had agreed to put in place a mechanism, called the Peace Clause, and committed to negotiate an agreement for permanent solution. The peace clause protects a developing country’s food procurement programmes against action from WTO members in case subsidy ceilings are breached.