The Confederation of Indian Industry has asked the government to negotiate with developed countries in the latest round of Doha negotiations on reduction of subsidies which would help all countries to participate on a level playing field while marketing agricultural produce.
"This will go a long way in ensuring stability of income for farmers in developing countries," says the CII, in its paper for India's negotiating position on agriculture that it has submitted to the government of India.
Along with reduction in subsidies, India should also ask for better market access opportunities for exportable surplus to developed and developing countries, CII said.
"Current negotiation should first focus on getting developed countries to make substantial commitments to reduce or eliminate domestic support and export subsidies and then move on to market access," CII stated in a press release issued in Mumbai.
Stuart Harbinson, chairman of the World Trade Organisation's Agriculture Council, has submitted his second draft paper, which could serve as a base paper on negotiations for market access, CII said.
"The paper which includes a formula can be included only if it covers the the concerns of developing countries," the release said.
"At the same time, for items of staple consumption affecting food security, there should be an exemption from reduction commitment on tariff," it added.
CII believes that all food safety issues should be included in the sanitary and phyto-sanitary (SPS) agreement, while labelling requirement should be considered in the agreement on technical barriers to trade.
For domestic support, CII pointed out that usually developing nations were criticised for giving subsidies to farmers while developed countries escaped criticism.
Subsidies were given under numerous categories and in the interest of clarity and transparency, there should be a reduction of categories or boxes in subsidies, CII said.
It added that export subsidy for agricultural produce should be completely eliminated within an agreed time, with major reduction in the early years. Similar commitments were also needed for government-supported export credits or credit guarantees schemes.
To protect farmers in developing countries, special safeguard measures would have to be provided under Article 5 of the existing agreement.
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