Agri subsidy 1.3% of GDP: Assocham

New Delhi, July 30 | Updated: Jul 31 2006, 05:30am hrs
India is subsidising the agriculture sector by a meager 1.3% of the countrys GDP against 42% of Organisation for Economic Cooperation and Development (OECD) nations, according to a paper brought out by the Associated Chambers of Commerce and Industry of India (Assocham) on Agricultural Subsidies: India Vs OECD Countries.

The chamber wants developing countries to build adequate pressure on developed nations in future World Trade Organisation (WTO) negotiations to force them to phase out their agriculture subsidies by 2013 as promised at the WTO Hong Kong ministerial conference.

The paper points out that OECD, which is a club of rich nations, was extending agriculture subsidies to its farmers at 38% of their GDP when WTO was signed, while Indias agriculture subsidy then stood at a level of less than 5% of the countrys GDP.

This only goes to prove that ever since WTO was signed, India rationalised its commitment by significantly curtailing its agricultural subsidies against developed countries move, which enhanced its agricultural subsidies to 42% now against its previous level of 38%, highlights the Assochams Paper.