Bali: The World Trade organization (WTO) agreed to allow countries to provide subsidy on staple food crops without any threat of disciplinary action, a concession that salvaged the current round of world trade talks from the brink of collapse on late Friday night December 6.

After negotiation for the past four days in the face of India’s insistent stand on the food security issue, the 159-member World Trade Organization (WTO) reached a historic agreement that will boost global trade by $1 trillion.

The deal allows nations such as India to fix a Minimum Support Price (MSP) for farm produce and to sell staple grains to the poor at subsidized rates. It also permits countries to store food grains to meet emergency requirements.

An overwhelming Commerce and Industry Minister Anand Sharma said that it is a great day when  India has clinched WTO deal for the farmers and poor of the world.
 
After all the tribulations suffered  by the farmers of India, the deal will bring a sense of relief as it is a victory for Indian farmers as well as for the farmers of the developing world, claimed Sharma.

According to the proposal, all schemes providing support in relation to procurement for public stock-holding programs for staple food crops will be protected from WTO litigation. The deal was settled by WTO Director General Roberto Azevedo after a critical meeting of key players, which went for hours together.

Developed countries such as the US and the EU wanted India to accept a peace clause, which offers four years of immunity from penalties imposed for breaching the farm subsidy cap of 10 per cent under the AoA. On the other hand, India and other developing nations  wanted the peace clause until a permanent solution is found on the matter for smooth implementation of the food security program.