US, Canada Question India’s Rice Policies at WTO Ahead of Key Geneva Meet

By Admin

24 Nov, 2025

The upcoming WTO Committee on Agriculture meeting in Geneva from November 24–26 has placed India’s rice policies under renewed global scrutiny. The United States and Canada have raised fresh concerns regarding India’s recent announcements on rice production, exports, and public stockholding, cautioning that these measures could potentially distort global rice markets.

Their questions stem from statements made last month by Consumer Affairs Minister Pralhad Joshi, who outlined the government’s plans to modernise the public distribution system (PDS), double agricultural exports, and expand India’s presence in global rice markets. With India already accounting for nearly 40% of global rice exports, Washington has asked New Delhi to explain how doubling exports would not adversely affect the commercial interests of competing rice-exporting nations.

Canada, echoing similar concerns, has sought clarity on how India’s public stockholding (PSH) and minimum support price (MSP) systems both repeatedly flagged as market-distorting align with its goals of boosting surplus production for exports. Ottawa noted that these policy tools have previously contributed to “global market distortions and negative impacts,” raising apprehensions about their renewed emphasis.

Spotlight on Bali Peace Clause
A key point of contention is India’s repeated invocation of the WTO’s 2013 Bali “peace clause,” which protects developing nations from legal challenges when they breach the 10% subsidy cap for staple crops such as rice. The clause mandates that countries must ensure their food security programmes do not distort global markets or undermine other members’ food security. Members, including the US and Canada, are now asking India to demonstrate clear compliance with these conditions through transparent data submissions.

Record Output and Rising Exports Raise Questions
In its submission, the US highlighted that India’s rice exports have been revised upward to 24 million tonnes since September 2025 equivalent to about 40% of global rice trade. This surge is driven by a record 2024–25 harvest that far exceeds domestic consumption needs. The US also pointed out that the Food Corporation of India (FCI) is procuring nearly half of the country’s rice crop, while continual hikes in MSP and diversions of public stock for ethanol production are triggering further concerns.

“In light of record production, record exports, record procurement… and continued increases in support prices… please clarify how increasing price supports for rice is consistent with the ‘Bali Interim Decision on Public Stockholding for Food Security Purposes’,” the US questioned in its filing.

India’s Response
India has consistently defended its MSP and public stockholding programmes as vital tools for supporting small and marginal farmers, ensuring food security, and stabilising the domestic market. The government maintains that rice procured through these channels is used exclusively for food security schemes, not commercial export, and that its interventions are not designed to distort global trade.

As the Geneva meeting commences, India’s detailed responses to these queries will be closely monitored. With agricultural reform and food security issues dominating global discussions, India’s rice support policies are once again set to take centre stage at the multilateral forum.