Allow India to Export Foodgrains From Public Stock to Needy Nations: FM Sitharaman

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Allow India to Export Foodgrains From Public Stock to Needy Nations: FM Sitharaman
16 Jul 2022
6 min read

News Synopsis

India has asked the World Trade Organization (WTO) to relax rules to allow it to export foodgrains from its public stocks to countries facing food crises.

"WTO restriction that grains so procured cannot be brought to the market to export - it is a condition which exists from the Uruguay Round days," Finance Minister Nirmala Sitharaman said on Friday. "We have repeatedly said that (surplus) than what we have for our small farmers... we are quite willing to trade," she said at a seminar on Strengthening Global Collaboration for Tackling Food Insecurity in Bali, Indonesia ahead of the third meeting of G20 finance ministers and central bank governors.

WTO rules prohibit countries from exporting foodgrains from public stocks purchased at subsidized prices. The World Trade Organization is hesitant to help India reduce hunger or food insecurity. This comes as a result of the Russia-Ukraine conflict and climate change, which have caused food shortages in many countries.

To meet previously agreed-upon commitments, India has exported 1.8 million tonnes of wheat since May 13, when an export ban was imposed. Many developed countries have accused India of violating WTO rules by providing farmers with minimum support prices.

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