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WTO and Indian Agriculture
WTO and Indian Agriculture
Unit III
Export Competition
WTO member countries are obliged to reduction commitments of their direct
export subsidies. Developed countries are to reduce the volume of subsidized agricultural
exports by 21 per cent and the value of subsidies by 36 per cent of the average base
period 1986-88 within six years. Developing countries are to reduce the same by 14 per
cent and 24 per cent respectively within ten years. Liberal trade policy helped the exports
to increase in absolute terms during post- WTO period and importantly increased their
share in world exports both in terms of quantity and value.
Conclusion
With the coming of WTO, the Indian Economy has undergone a tremendous
change. The WTO Agreement on Agriculture has great impact on Indian Agriculture,
which was really felt by India several times. The Competative Agricultural Markets
(CAM) was not correct. Agricultural exports was dominated by few large MNCs and
trading agents. The cheap imports have frequently hit the Indian markets, causing shock
waves among the agricultural producers. The later effects of WTO policies were
undemocratic because of the lack of transparency during negotiations. There are other
factors as well for the low productivity in India. Excepting in the rice market, India is
negligible force in global market
The WTO Agreement on agriculture has both negative and positive impacts on
Agriculture of India. About 70% of Indian people depends on agriculture, so overall
export import of agricultural commodities are directly or indirectly depends upon WTO
Laws. Therefore, WTO Norms plays vital role in upliftment of socio-economic
conditions of rural population in India. In fact, WTO Laws directly or indirectly affects
the Indian economy.
A higher growth in agriculture, thus, needs a comprehensive revamp of
agricultural policy with reorientation towards rapid diversification of this sector. A
progressive correction is required in the incentive structure for agriculture so that the
excessively high minimum supports prices do not continue to distort resource allocation
in agriculture.
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