← All questionsGS3 · 2023 · Disaster Management ·Farm Subsidies and WTO Issues
QUESTION 14
GS3
15 marks

What are the direct and indirect subsidies provided to farm sector in India. Discuss the issues raised by the World Trade Organization (WTO) in relation to agricultural subsidies.

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11 min
250 words

What the examiner wants

List direct and indirect farm subsidies in India and discuss the WTO issues they raise.

DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.

Demand-wise check

  1. 1Direct: PM-KISAN, MSP procurement, crop insurance≈65 words
  2. 2Indirect: fertiliser, power, irrigation, credit interest subvention, seeds≈65 words
  3. 3WTO: Amber Box de minimis 10%, MSP calculation at 1986–88 prices, public stockholding peace clause (Bali 2013), complaints on sugar and rice≈65 words

Open in about 30 words and close in about 30.

Answer plan

Direct subsidiesIndirectWTO boxesIndia's issuesConclusion

Where marks usually go

  • Not explaining Amber, Blue and Green boxes
  • No mention of the peace clause

Draw this

  • Table of WTO boxes

Value addition

  • FactIndia invoked the Bali peace clause for rice in 2020, the first country to do so.WTO notification
  • CaseWTO panel ruled against India's sugar subsidies in 2021; India appealed.WTO DS579–581

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