- Counter-notification raises concerns over underreported support
- Move adds pressure on global rice trade dynamics
The United States has escalated scrutiny of India’s agricultural support policies, filing its fourth counter-notification at the World Trade Organization (WTO) over rice and wheat subsidies. The submission challenges India’s methodology for reporting market price support, alleging that the actual level of subsidies is significantly higher than notified.
The issue centres on WTO rules that cap domestic support at 10% of the value of production. US estimates, based on India’s own data, suggest that support levels for rice and wheat could far exceed this threshold, raising concerns over trade distortion and competitiveness in global grain markets.
The latest filing builds on earlier submissions and reflects growing alignment among exporting nations questioning India’s transparency. Several countries have argued that underreported subsidies may provide Indian rice with a structural pricing advantage in international markets. India, however, maintains that its support programmes are aimed at food security and public stockholding, often invoking WTO provisions to justify its policies.
The development comes at a time when global rice trade is already navigating geopolitical disruptions and elevated logistics costs. Increased scrutiny of subsidy regimes could further influence pricing dynamics and trade flows, particularly as India remains the world’s largest rice exporter.
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