Comprehension : Comprehension

Q 228 / 466

UPSC CSE Prelims 2018

Being a member of the WTO, India is bound by the agreements that have been signed and ratified by its members, including itself. According to Article 6 of the Agriculture Agreement, providing minimum support prices for agricultural products is considered distorting and is subject to limits. The subsidy arising from 'minimal supports' cannot exceed 10 per cent of the value of agricultural production for developing countries. PDS in India entails minimum support prices and public stockholding of food grains. It is possible that, in some years, the subsidy to producers will exceed 10 per cent of the value of agricultural production.

What is the crucial message conveyed by the above passage?

EXPLANATION

Correct Option (C)

The passage elucidates the inherent tension between India's domestic food security policies and its obligations as a member of the World Trade Organization (WTO). India's Public Distribution System (PDS), which incorporates Minimum Support Prices (MSP) and public stockholding of food grains, is a critical component of its food security strategy. However, Article 6 of the WTO Agreement on Agriculture stipulates limits on agricultural subsidies, particularly for developing countries, restricting them to 10% of the value of agricultural production. The passage indicates that the subsidy arising from India's 'minimal supports' could potentially exceed this 10% threshold in certain years. This scenario directly illustrates a conflict where India's efforts to ensure food security for its population through subsidies may contravene its international trade commitments, thereby signifying that for India, food security collides with trade.

Incorrect Options:

Option (A) suggests that India should revise its PDS. The passage highlights a potential conflict and limitation imposed by WTO rules on agricultural subsidies but does not prescribe a specific solution or mandate a revision of the PDS. It merely presents the dilemma.

Option (B) proposes that India should not be a member of the WTO. The passage discusses the challenges and implications of India's membership in the WTO, specifically concerning the reconciliation of its food security policies with trade regulations. It does not advocate for India's withdrawal from the organization.

Option (D) states that India provides food security to its poor. While this is a factual premise underlying the passage, it is not the crucial message conveyed. The passage's central theme is the conflict that arises when India's food security measures, such as subsidies, interact with and potentially exceed the limits set by international trade agreements like those of the WTO. The message focuses on the challenge rather than merely stating the existence of food security provisions.