UN Rice Tenders: Indian Export Curbs Under WTO Lens

Sub: Economy

Sec: External sector

Key Points:

Concerns Raised by WTO Members:
- Canada, Brazil, Australia, and the U.K. have raised questions at the World Trade Organization (WTO) about India’s alleged restriction on rice exporters participating in UN World Food Program (WFP) tenders.
- These tenders were for the supply of broken rice to Cameroon, Togo, and Algeria.
WTO Committee on Agriculture Meeting:
- India is expected to respond to these queries at the WTO Committee on Agriculture (CoA) meeting scheduled for Thursday.
Commitment to WFP Exemptions:
- In 2022, WTO members agreed to exempt the WFP’s humanitarian food purchases from export restrictions.
- Initially, India opposed this decision to maintain flexibility for domestic food security but eventually consented.
Impact on Agriculture Exports:
- India’s export restrictions on commodities like rice, wheat, sugar, and onions have affected agricultural exports, reducing them by about $5-6 billion in the last fiscal year.
Domestic Food Security Concerns:
- Indian officials argue that these export restrictions are crucial to ensure domestic food security.
- Exports are allowed only when there is a surplus.
Decline in Agriculture Exports:
- India’s agriculture exports for the April-February 2023-24 period declined by 8.8% to $43.7 billion