Discuss the different types of subsidies and supports provided by the Government of India to the agricultural sector. Examine the related issues pertaining to the Agreement on Agriculture of World Trade Organisation (WTO). (250 words)

Agricultural support pursues food security, farmer income, input affordability and rural stability, but can distort markets if poorly designed.

Input subsidies cover fertiliser, electricity, irrigation, seed and credit. Output support includes MSP procurement and price deficiency mechanisms. Food subsidies operate through PDS; investment support includes income transfers, insurance, infrastructure, extension and research. WTO classifies supports broadly as amber-box trade-distorting measures, blue-box production-limiting support and green-box minimally trade-distorting services.

The AoA’s de minimis limits and the administered-price reference period make India’s public stockholding calculations contentious: procurement at MSP can appear as market-price support. Developed countries’ large historical and non-product-specific subsidies create an equity concern. Export restrictions, market access and special safeguard demands affect developing-country food security. India seeks a permanent solution for public stockholding and protection for poor farmers.

Shift gradually from open-ended input subsidies to direct, targeted and income-linked support; improve soil, water and energy efficiency; publish transparent notifications; strengthen PDS and storage. A permanent WTO solution should recognise livelihood farming, inflation and nutritional security while preventing exportable surpluses from distorting trade.

India needs a rules-based but development-sensitive agricultural policy combining efficient domestic support with multilateral credibility.

economy; agriculture; agricultural policy; food security