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Abstract
India has submitted notifications to the World Trade Organization (WTO) on
domestic support to agricultural producers in 1995-2003. This paper reviews India’s notifications
and summarizes the related discussion in the WTO Committee on Agriculture of some key issues
relating to the rules of the Agreement on Agriculture on domestic support. It calculates price
gaps for rice, wheat, cotton and sugarcane in 1995 to 2013 under four scenarios regarding the
external reference price and calculates the resulting market price support using total production
and procurement quantities. It compares the associated Aggregate Measurements of Support
(AMSs) to their limits based on value of production. The AMSs show large excesses above their
limits over many years until 2013 for several crops under some readings of the Agreement but
much less so if certain adjustments are made. This highlights the differences among alternative
interpretations of the Agreement in determining compliance with a country’s obligations, in
particular the understanding of the fixed external reference price and the production eligible to
receive the applied administered price. The paper puts India’s administered pricing in the context
of the 2013 decision of WTO ministers regarding protection under some conditions against
challenge under the WTO dispute settlement mechanism.