Indonesian President may call PM on Bali stalemate

Sensing collapse of the World Trade Organization’s (WTO's) Bali talks due to stiff stand taken by India over the food security issue, Indonesian President Susilo Bambang Yudhoyono is expected to call Prime Minister Manmohan Singh to persuade New Delhi to soften its approach.

According to a report in the local media here, Yudhoyono may call Singh on Thursday.

Quoting Presidential spokesman Teuku Faizasyah, The Jakarta Post said the President was planning to call Singh, but did not provide further details. “There is a plan for that [call],” the report quoting Teuku said. As Indonesia is hosting the WTO meeting, it wants to conclude it successfully. The report said Indonesian Trade Minister Gita Wirjawan too confirmed that “It [the call] is being planned”.

India has hardened its stance clarifying that it would not accept any interim solution on the food security issue.

"India's right to food security is non-negotiable," Commerce and Industry Minister Anand Sharma said during a press briefing.

The G-33 group, including India, is demanding amendment in the WTO agreement on agriculture in order to procure food grains at minimum support price (MSP) from resource poor farmers and sell it at cheap rates to poor people. There are apprehensions that once India would implement its food security programme completely, it might breach the 10 per cent farm subsidy cap. India is demanding a permanent solution to the issue.

Developed countries have proposed an interim solution of a four-year peace clause. Under the peace clause, a WTO member gets immunity against penalty for breaching the food subsidy cap. It would also allow India to procure food grains at the MSP and sell it at subsidised rates through the public distribution system.     

According to the WTO norms, a developing nation can provide food subsidy up to 10 per cent of the total farm output. India’s Food Security Act entitles 820 million people to five kg of foodgrains per person a month at Rs 1-3 per kg. The country needs 62 million tonnes foodgrains a year to implement the law.

The G-33 proposal on food security is aimed at addressing the problems faced by developing countries due to outdated WTO rules which base agriculture subsidy calculation on external reference prices of 1986-88, even as global food prices have increased manifold during this period.

Sharma is here for the ninth WTO ministerial conference. The meeting is aimed at reviving the Doha Round of stalled talks for a global trade deal. It was started in 2001.