ET: India takes exception to World Bank report: Nov 4, 2006

The statement has resulted in protests from India and other developing countries which are banking on the protection accorded by the special products category to preserve the livelihood interests of their poor farmers.

The international lending agency, in a recent meeting of the World Trade Organisation (WTO) committee on agriculture, said that part of the solution to securing food supplies to the world’s poor by keeping food import prices low is through liberalisation.

It warned that the process could be undermined if the negotiations lead to too much flexibility through “sensitive products” and “special products” categories, a WTO official said. The agenda for the on-going WTO Doha round provides for protection for developing country farmers in the form of special products with all products designated as such not to be subjected to tariff cuts.

India is participating in the agriculture negotiations mainly because there is a provision for protecting agriculture commodities which could affect the food security and livelihood concerns of its farmers through the special products category.

Speaking to ET, official sources said that the World Bank from time to time comes up with such motivated statements whenever negotiations are expected to begin. Stating that the reports quoted by the World Bank were based mostly on fabrication, an official said that India had opposed it as part of the G-33 group.