India has recently come under scrutiny from countries like Canada, Brazil, Australia, and the UK regarding its alleged ban on rice exports to UN tenders earlier this year. These countries have approached India through the World Trade Organization (WTO) seeking clarification on whether Indian rice exporters were prevented from participating in the UN World Food Program (WFP) tenders for broken rice supplies to countries like Cameroon, Togo, and Algeria.
The issue arose after news reports suggested that India’s Directorate General of Foreign Trade (DGFT) denied requests from rice exporters to engage in the WFP’s rice tender process. This move has raised concerns among WTO members, who had previously approved a decision exempting the WFP’s humanitarian food purchases from export restrictions.
While India initially resisted this decision to retain flexibility in imposing export restrictions for domestic food security reasons, it eventually agreed to comply. However, the recent developments regarding the WFP tenders have prompted questions from the concerned countries about India’s commitment to exempting such supplies from export restrictions.
The joint query from Canada, Brazil, Australia, and the UK also sought clarification on reports indicating that despite a general export ban on non-basmati white rice, India allowed exports to Tanzania and broken rice to Djibouti and Guinea Bissau. The countries requested details on other members benefiting from government-to-government (G2G) agreements with India on rice exports.
These developments come at a time when export bans and restrictions on agricultural commodities like rice, wheat, sugar, and onions have affected India’s agriculture exports, resulting in a decline of $5-6 billion in the last fiscal year. Indian officials have defended these restrictions as necessary for ensuring food security and exporting only when there is a surplus.
As India prepares to address these queries at the WTO Committee on Agriculture meeting, the spotlight is on the country’s adherence to international trade norms and transparency in its bilateral agreements. The outcome of this scrutiny could impact India’s future trade relations and its position in the global agriculture market.
It remains to be seen how India will respond to the concerns raised by its trading partners and whether it can provide satisfactory explanations for its actions. The WTO meeting is expected to provide clarity on the issue and determine the way forward for India’s participation in international food aid programs and trade agreements.
Stay tuned for updates on this developing story as India navigates its way through the complexities of international trade regulations and diplomatic relations.