Name of Delegate: Prateek Jain Committee: World Trade Organization (WTO) Agenda: Agricultural Sub id! Name of Countr!

: "ndia #rom t$e time of inde%endence t$e "ndian &o'ernment $a been tr!ing to get ma(imum agricultural out%ut out of t$e land t$e! $a'e) T$e out%ut mu t be uc$ t$at it i able to u tain t$e large %o%ulation of "ndia (*)++ billion in t$e !ear +,*+)) #or t$e e a lot of te% $a'e been taken b! t$e go'ernment in order to ma(imize t$e !ield) A large number of te% taken are in form of ub idie ) T-o of t$e mo t contro'er ial cla e of ub idie acro toda! -e are di cu ing agricultural ub idie ) t$e -orld are fuel ub idie and agricultural ub idie and

T$ere are t-o ma.or t!%e of agricultural ub idie -$ic$ are gi'en in "ndia are t$e fertilizer ub idie and food ub id!) T$e! t-o account for almo t /, %ercent of agricultural ub id!) "n addition to t$i one more form -$ic$ i intangible and uncountable i t$at0 agricultural income i not ta(ed in "ndia) Sub idie in "ndian agriculture $a'e increa ed ignificantl! in t$e %o t1reform %eriod) Food subsidies are gi'en b! %ro'iding food grain at a lo-er %rice a com%ared to t$at of market %rice) "n "ndia it i done on t$e ba i of Antyodaya Anna Yojana (AAY), an "ndian go'ernment %on ored c$eme for ten million of t$e %oore t familie ) "t i on t$e lookout for t$e 2%oore t of t$e %oor2 b! %ro'iding t$em 34 kilo of rice and -$eat at 5 )+ %er kg) #ood ub idie increa ed from 5 ) +064, crore in *//*1/+ to about 5 ) 7+06+3 crore in +,**1*+ (5e'i ed 8 timate )0 an increa e of o'er +4 time in +* !ear ) T$e table belo- $o- food ub idie tati tic in t$e la t 3 !ear :

Anot$er t!%e of ub id! gi'en in agriculture i fertilizer subsidy) T$e go'ernment %a! ub idie to fertilizer com%anie 0 -$o agree to ell it for le t$an t$e co t of %roduction0 at %rice et b! t$e go'ernment) T$i i t$e ba ic conce%t of fertilizer ub id!) T$e table belo- $o- fertilizer ub id! tati tic in t$e la t 3 !ear :

&o'ernment $a al o $el%ed in %ro'iding power and water at a lower price than the commercial rate to farmer ) According to recent ur'e! t$e go'ernment $a found out t$at t$e ub idie are being u ed b! %eo%le -$o actuall! do not -ant it) 5ic$ %eo%le -$o can afford agricultural in%ut are u ing it and are $ence kee%ing a boulder in t$e countr!9 econom!) :ence0 t$e &o'ernment i tr!ing to bring do-n ub idie in order to tackle misdirected subsidy". he !o"ernment needs to !radually brin! down misdirected subsidies and limit the benefits to needy persons.# the $hief %conomic Ad"isor &a!huram &ajan said. T$e delegation ugge t t$at to u tain long1term gro-t$ in agricultural %roduction and t$erefore %ro'ide a long1 term olution to %o'ert! reduction0 t$e go'ernment $ould cut ub idie (in a %$a ed manner) of fertilizer0 irrigation0 %o-er and credit and increa e in'e tment in agricultural re earc$ and de'elo%ment0 rural0 infra tructure and education)