Subsidies to Farmers in Developed Countries

Food and Agriculture Organisagion (FAO) says that about one billion people, i.e. about 15% of the world’s population, are suffering from hunger. The people in this group are unable to feed themselves as food prices are high, which restricts access.

Most of the world’s grains are exported by developed countries and imported mainly by developing countries with a few exceptions. India is among the countries which import food grains, occasionally, if not regularly. In the years to come, India’s imports of food grains will increase. In such a situation, India should argue for ways and means of making food grains cheaper in the international market.

However, at the World Trade Organisation (WTO) negotiations of Doha Round, India, along with a few developing countries, is opposing the subsidies given by USA and Europe to their farmers. This approach seems to be wrong. Farm subsidies in developed countries make food grains cheaper in the domestic and international markets.  Food-importing developing countries, including India, should be happy that the food-exporting developed countries make their produce cheap in the international market by subsidizing their farmers.

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