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Peace Clause for rice
April 14 , 2024
23 days
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- India has invoked the peace clause at the World Trade Organization (WTO) for the fifth consecutive time for the marketing year 2022-23 (October-September).
- This is due to breaching the prescribed subsidy limit for rice offered to its farmers.
- While the value of India’s production of rice was $52.8 billion in 2022-23, a subsidy worth $6.39 billion was given to farmers during the year.
- This means the rice subsidy was 12 per cent of the value of production, thereby breaching the 10 per cent domestic support ceiling.
- However, there is no immediate repercussion for the breach since India has invoked the “peace clause”, agreed upon at the Bali ministerial of WTO in 2013.
- This provides immunity to developing countries from challenges for breaching the ceiling for wheat and rice until a permanent solution is found.
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