Skip to main content

India's food security law is against WTO norms, distributes "highly subsidized" food to 67% population: UNDP

By A Representative
In what may sound music to the ears of the Narendra Modi government, the United Nations Development Programme (UNDP) has warned India that the National Food Security Act (NFSA), 2013, promulgated by the previous UPA government, saying that it has put India at loggerheads with the World Trade Organization (WTO).
A highlighted sub-section titled “WTO and India’s national development policies” of the chapter “Transforming global institutions” in the UNDP’s “Human Development Report 2016” says, the “right to food” is the “biggest ever food safety net programme, distributing highly subsidized food grain (61 million tonnes) to 67% of the population.”
However, it warns the report, “The scale of buying grain from poor farmers for sale to poorer consumers put India at risk of violating its WTO obligations in agriculture”, insisting, WTO members “are subject to trade sanctions if they breach a ceiling on their agricultural subsidies.”
Pointing out that “the method of calculating the ceiling is fixed on the basis of 1986–88 prices and in national currency, an unusually low baseline”, the report states, “This clear asymmetry in international rules reduces national space for development policy.”
Says the report, “India, as other developing countries, did not have large agricultural subsidies when the rules were originally agreed”, adding, “The act – which aims to stave off hunger for 840 million people and which can play a pivotal role in the UN agenda to end hunger everywhere – is being challenged.”
The reason for the challenge is, says the report, “it raises India’s direct food subsidy bill from roughly $15 billion a year to $21 billion”, adding, “In comparison, the United States increased its agricultural domestic support from $60 billion in 1995 to $140 billion in 2013.” 
“The matter has not been resolved, except for a negotiated pause in dispute actions against countries with existing programmes that notify the WTO and promise to negotiate a permanent solution”, the report states.
The warning comes despite the fact that, on a scale of 1, UNDP’s Human Development Index (HDI) for India is found to be 0.625, ranking the country No 131st among 185 countries. However, calculated by taking into account inequality, the Inequality-adjusted HDI (IHDI) is 0.443, suggesting a loss of 29.2%, ranking the country 131st among 179 countries.
Arrived at on the basis of different types of inequalities, the report states, the report calculates human inequality coefficient to be 26%, inequality in life expectancy at birth 24%, inequality in education 29.4%, and inequality in income 16.1%. Further, the report finds there is a gender gap in the HDI of males and females – it is 0.549 for females and 0.671 for males.
UNDP says, “The international agenda should be to set rules to expand trade in goods, services and knowledge to favour human development and sustainable development goals”, insisting, “The key reforms to advance this agenda include finalizing the WTO’s Doha Round, reforming the global intellectual property rights regime and reforming the global investor protection regime.”
Underlining that “multilateral and bilateral organizations determine the main rules and standards” in this report, UNDP says, “For trade in goods and services the WTO is the main standard-setting entity: Member countries are bound by its norms.”

Comments

TRENDING

When democracy becomes a performance: The Tibetan exile experience

By Tseten Lhundup*  I was born in Bylakuppe, one of the largest Tibetan settlements in southern India. From childhood, I grew up in simple barracks, along muddy roads, and in fields with limited resources. Over the years, I have watched our democratic system slowly erode. Observing the recent budget session of the 17th Tibetan Parliament-in-Exile, these “democratic procedures” appear grand and orderly on the surface, yet in reality they amount to little more than empty formalities. The parliamentarians seem largely disconnected from the everyday struggles faced by ordinary exiled Tibetans like us.

Study links sanctions to 500,000 deaths annually leading to rise in global backlash

By Bharat Dogra  International opinion is increasingly turning against the expanding burden of sanctions imposed on a growing number of countries. These measures are contributing to humanitarian crises, intensifying domestic discord, and heightening international tensions, thereby increasing the risks of conflicts and wars. 

​Best left-handed cricket XI of all-time: Could it beat an all-time right-hander XI?

By Harsh Thakor*  ​This is my all-time left-handers Test XI. It could arguably give an all-time right-handers XI a strong run for its money, boasting the likes of Garry Sobers, Brian Lara, Wasim Akram, and Adam Gilchrist.

Dhurandhar: The Revenge — Blurring the line between fiction and political narrative

By Mohd. Ziyaullah Khan*  "Dhurandhar: The Revenge" does not wait to be remembered; it arrives almost on the heels of its predecessor, released on March 19, 2026, just months after the first film’s December 2025 debut. The speed of its arrival feels less like creative urgency and more like calculated timing—cinema responding not to storytelling rhythm but to the emotional climate of its audience. Director Aditya Dhar, along with actor Yami Gautam, appears acutely aware of this moment and how to harness it.

BJP accounts for 99% of political donations in Gujarat: Corporate giants dominate

By Jag Jivan*  An analysis of the official data on donations received by national parties from Gujarat during the Financial Year 2024-25 reveals a staggering concentration of funding, with the Bharatiya Janata Party (BJP) accounting for nearly the entirety of the contributions. The data, compiled in a document titled "National Parties donations received from Gujarat during FY-2024-25," lists thousands of transactions, painting a detailed picture of the financial backing for political parties from one of India’s most industrially significant states.

Alarming decline in India's repair culture threatens circular economy goals: Study

By Jag Jivan*   A comprehensive new study by environmental research and advocacy organisation Toxics Link has painted a worrying picture of India's fading repair culture, warning that the trend towards replacement over repair is accelerating the country's already critical e-waste crisis.

The troubling turn in Telangana’s forest governance: Conservation without consent

By Palla Trinadha Rao   The Government of Telangana has recently projected its relocation initiatives in tiger reserves as a model of “transformative conservation,” combining ecological restoration with improved livelihoods for tribal communities. In the Amrabad Tiger Reserve, the State has announced a rehabilitation package covering hundreds of tribal families, offering compensation or resettlement with land and housing. At first glance, such initiatives appear to align conservation with development. However, a closer examination of both law and ground realities reveals a deeply troubling pattern—one where constitutional safeguards, statutory mandates, and community rights are being systematically sidelined in the name of conservation.

Beyond the island: Top mythologist reorients the geography of the Ramayana

By Jag Jivan*  In a compelling new analysis that challenges conventional geographical assumptions about the ancient epic, writer and mythologist Devdutt Pattanaik has traced the roots of the Ramayana to the forests and river systems of Central and Eastern India, rather than the peninsular south or the modern island nation of Sri Lanka.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.