Passage

Being 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.

QUESTION

CSAT

Medium

Comprehension

Prelims 2018

What is the crucial message conveyed by the above passage?

Select an option to attempt

Explanation

Option A is incorrect. The passage does not explicitly suggest that India should revise its Public Distribution System (PDS). While it mentions the subsidy limits under WTO agreements, it does not argue for a revision of the PDS itself.

Option B is incorrect. The passage does not advocate for India to leave the WTO. It merely outlines India’s obligations under WTO agreements, particularly regarding subsidies and agricultural support.

Option C is correct. The passage highlights a tension between India’s food security measures, which involve subsidies and minimum support prices, and the WTO’s regulations on agricultural subsidies. This creates a collision between India's need to ensure food security for its population and the limits placed by international trade agreements.

Option D is incorrect. Although India provides food security to its poor through measures like the PDS, the passage does not primarily focus on this aspect. Instead, it centers on the conflict between food security measures and trade regulations.

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