After 10 years of deadlock, the European Union (EU) is ready to negotiate with India in WTO on which issue related to food security?

Correct option is A

The Public Stockholding (PSH) Norms refer to the policies where governments procure, store, and distribute food grains to ensure food security, stabilize market prices, and support farmers. India has been a strong advocate of public stockholding programs under the WTO (World Trade Organization) framework, while developed countries, including the EU, have raised concerns over trade distortions caused by such programs.

• India's Food Security Program involves the Minimum Support Price (MSP) and the Public Distribution System (PDS) to ensure affordable food access to its population.

• The Agreement on Agriculture (AoA) under WTO restricts subsidies on public stockholding if they exceed a certain limit (10% of the value of production).

• India and other developing nations argue that food security programs should not be considered trade-distorting subsidies.

• The EU has traditionally opposed India's stand, but after a decade-long deadlock, it has agreed to negotiate on this issue at the WTO.

• India seeks a permanent solution that allows it to continue supporting farmers and ensuring food security without violating WTO rules.

Thus, Public Stockholding Norms are central to India's food security policies and WTO negotiations with the EU.

Information Booster:

• Ensures Food Security – PSH helps in storing food grains for emergency situations and public distribution.

• Supports Farmers – By guaranteeing a Minimum Support Price (MSP), PSH provides income stability to farmers.

• Price Stabilization – It prevents excessive price fluctuations in the agricultural market.

• Developing Nations' Demand – Many developing countries support India's stance at WTO for a permanent solution.

• Bali Ministerial Decision (2013) – A temporary peace clause was introduced, allowing India to continue its food security programs without facing penalties.

• EU's Shift in Stance – The EU is now willing to discuss potential reformsto accommodate India's food security concerns.

Additional Knowledge:

(2) Climate Change

• While climate change impacts agriculture and food production, WTO negotiations on food security primarily focus on trade-related policies rather than environmental concerns.

• Discussions on climate change in WTO are more about carbon emissions, trade restrictions, and sustainability measures rather than food security programs.

(3) Non-Tariff Barriers to Trade

• Non-tariff barriers (NTBs) include import quotas, licensing requirements, and technical standards that restrict trade.

• Though NTBs affect agricultural trade, they are not directly related to India's demand for public stockholding reforms.

(4) Sanitary & Phytosanitary (SPS) Measures

• SPS measures are WTO rules related to food safety and animal/plant health standards.

• The WTO SPS Agreement allows countries to set food safety standards, but this is unrelated to India's food stockholding concerns.