U.S, key grain-exporting nations file counter-notification against India’s wheat and rice subsidies at WTO

USA – In a new challenge to India’s agricultural policies, the United States, Argentina, Australia, Canada, and Ukraine have submitted a counter-notification to the World Trade Organization (WTO), arguing that India’s domestic subsidies for wheat and rice far exceed its allowable limits under WTO rules.

This latest filing marks a continued effort by the U.S. and its allies to pressure India to disclose the true scale of its support to these staple crops, claiming that the lack of transparency and non-compliance with WTO agreements distort global markets.

Under WTO rules, India is permitted to subsidize wheat and rice production by no more than 10% of the total value of each crop.

However, the counter-notification, which analyzes data from India’s own records for the marketing years 2021-22 and 2022-23, demonstrates that India’s support levels are substantially higher.

This excessive support, critics argue, incentivizes Indian farmers to overproduce wheat, creating vast public stockpiles.

At times, these surplus stocks have been released onto international markets, disrupting prices and causing hardship for wheat-exporting countries and their farmers.

“We appreciate the ongoing efforts by the U.S. Trade Representative and other country delegations in spotlighting India’s trade-distorting wheat support,” said Vince Peterson, President of U.S. Wheat Associates.

“India remains non-compliant with its WTO obligations, and this unwavering stance is hindering progress in agricultural negotiations at the WTO. By raising awareness, we hope to eventually prompt India to become a responsible trading partner.”

The National Association of Wheat Growers (NAWG) also expressed support for the counter-notification.

“We’re grateful to the USTR for its consistent push for compliance,” stated NAWG CEO Chandler Goule.

“American farmers understand the value of supporting their own, but India’s approach is damaging to the global market, and it’s critical that they honor their commitments.”

This is the third counter-notification the U.S. has filed against India’s rice and wheat subsidies, with prior filings in 2018 and 2023.

In 2018, the U.S. submitted the first counter-notification independently, followed by a second in 2023, which was co-sponsored by Australia, Canada, Paraguay, Thailand, and Ukraine.

The latest notification arrives as India has eased certain export restrictions, prompting concerns that its surplus wheat will soon impact the global market.

Bobby Hanks, chair of the USA Rice International Trade Policy Committee, acknowledged the ongoing disruption.

 “This third counter-notification is a necessary step, particularly as India’s behavior begins to alarm not only developed countries but also emerging economies that share similar concerns,” Hanks remarked.

The coalition hopes this action will encourage India to reconsider its agricultural policies and work towards compliance, which would stabilize markets and benefit agricultural economies worldwide.

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