India invokes peace clause for 3rd time as rice subsidies exceed cap

India has for the third time invoked the peace clause for exceeding the 10% ceiling on support it offered its rice farmers. The country informed the WTO that the value of its rice production in 2020-21 was $45.56 billion while it gave subsidies worth $6.9 billion, which comes out to 15.14% as against the permitted 10%.

The peace clause protects India's food procurement programmes against action from WTO members in case the subsidy ceilings are breached.

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


New Delhi told the WTO on Friday the stocks under the programme are acquired and released to meet the domestic food security needs of India's poor and vulnerable population, and not to impede commercial trade or food security of others.