Question - Did India Have To Reduce Subsidies Provided To Its Farmers As A Consequence Of The Uruguay Round Negotiations?
Answer -
India was not required to reduce any of the subsidies given to its farmers. This is because India's total AMS was well below the ceiling prescribed in the AoA.
Moreover, developing countries have been provided three additional exemptions, namely,
- investment subsidies which are generally available to agriculture;
- agricultural input subsidies generally available to low-income or resource-poor producers; and
- domestic support to producers to encourage diversification from growing illicit narcotic crops.