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Miscellaneous·2018·Easy

eing a member of the WTO, India is bound by the agreements that have been signed and ratified by its members, including itself. According to Article 6 of the Agriculture Agreement, providing minimum support prices for agricultural products is considered distorting and is subject to limits. The subsidy arising from 'minimal supports' cannot exceed 10 per cent of the value of agricultural production for developing countries. PDS in India entails minimum support prices and public stockholding of food grains. It is possible that, in some years, the subsidy to producers will exceed 10 per cent of the value of agricultural production. What is the crucial message conveyed by the above passage?

eing a member of the WTO, India is bound by the agreements that have been signed and ratified by its members, including itself. According to Article 6 of the Agriculture Agreement, providing minimum support prices for agricultural products is considered distorting and is subject to limits. The subsidy arising from 'minimal supports' cannot exceed 10 per cent of the value of agricultural production for developing countries. PDS in India entails minimum support prices and public stockholding of food grains. It is possible that, in some years, the subsidy to producers will exceed 10 per cent of the value of agricultural production. What is the crucial message conveyed by the above passage?

Options

  1. a.

    India should revise its PDS.

  2. b.

    India should not be a member of WTO.

  3. c.

    For India, food security collides with trade.

    Correct answer
  4. d.

    India provides food security to its poor.

Explanation

This passage discusses a persistent challenge that India faces at the WTO concerning the Agreement on Agriculture (AoA). It highlights the dilemma India encounters as a WTO member: on one hand, it must adhere to the agreements it has ratified as a WTO member, while on the other hand, it must prioritize the food security of its disadvantaged citizens, often conflicting with WTO norms. Therefore, option (c) is the most appropriate answer. Option (a) is incorrect as it involves a strong policy recommendation, which is not mentioned in the passage. Option (b) is also incorrect as it presents another strong recommendation not discussed in the passage. Option (d) is unsuitable as it merely presents a fact without conveying a crucial message from the passage.

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