India invokes WTO peace clause for FY25 rice subsidies for farmers

New Delhi: India has invoked the peace clause for the seventh time for exceeding the 10% ceiling on subsidies offered to rice farmers under the World Trade Organisation rules.

The country informed the WTO on Wednesday that it gave subsidies worth $7.6 billion to rice farmers in 2024-25, which was about 11.85% of the value of production at $64.13 billion.

The peace clause protects India's food procurement programmes against action from WTO members in case the subsidy ceilings (de minimis)-10% of value of food production in the case of India and other developing countries-are breached.


New Delhi had first invoked the clause in 2020 when it became the first country to do so.

"The de minimis level for rice has been exceeded pursuant to the support provided through public stockholding programmes for food security purposes which were in existence as of the date of the Bali Ministerial Decision on Public Stockholding for Food Security Purposes," India told the WTO.

The stocks under the programme are acquired and released in order to meet the domestic food security needs of its poor and vulnerable population, and not to distort trade or adversely affect the food security of other WTO members, the country noted.

"For these reasons, the breach of the de minimis limits for rice is covered by the peace clause set out in the Bali Ministerial Decision on Public Stockholding for Food Security Purposes," it said in a notification.

India gave input subsidies worth $42.5 billion to its low-income or resource-poor producers for marketing year from October 1, 2024, to September 30, 2025. This was lower than $43.25 billion given in the previous year.