US and Allies Challenge India's Trade Distorting Wheat Policies

India's Wheat Subsidies Under Scrutiny by US and Allies

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) recently commended the Office of the United States Trade Representative (USTR) for submitting a counter-notification to the World Trade Organization (WTO) concerning India’s domestic support policies for wheat and rice.

This action highlights India’s opaque subsidies, input supports, and market price controls, with Argentina, Australia, Canada, and Ukraine joining the U.S. to spotlight India’s lack of transparency in these practices.

“We appreciate that the USTR and other country delegations are working to highlight India’s trade-distorting wheat support,” said USW President Vince Peterson. “India’s government continues to be out of compliance on its commitments and its refusal to compromise on its level of support and public stockholding is blocking any progress on agricultural negotiations at the WTO. It is important to keep bringing this issue to light with hope that it will eventually pressure India to become a responsible trading partner.”

“Thank you to the USTR for their continued efforts to push India to follow through and come into compliance with their WTO commitments,” said NAWG CEO Chandler Goule. "Farmers in the United States understand the importance of supporting producers when needed. However, India’s approach is the wrong way to do it, and it is important that they follow through on their commitments.”

India’s support mechanisms incentivize excessive wheat production, leading to significant public stockpiling. At times, the Indian government has released these surplus stocks onto international markets, resulting in market instability that negatively affects farmers and consumers in exporting nations.

Under WTO regulations, India is limited to a 10% subsidy threshold based on the total value of its crop production. According to the USTR's counter-notification, India has exceeded this limit during the 2021/22 and 2022/23 marketing years, as indicated by India’s own reporting data.

USW and NAWG are committed to ongoing collaboration with USTR and international stakeholders to address these practices, ensuring fair competition for U.S. wheat farmers in the global market.

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