Jaitley criticises developed countries on farm subsidies

New Delhi, Dec. 24: Expressing concern over appreciating rupee affecting exports, the Union government on Wednesday slammed developed countries for distorting global trade by highly subsidising their farm produce.

"The weakening of dollar is creating a challenging situation in which exporters are trying to cope. Indian farmers are victims of trade distortions by developed countries," Union commerce minister Arun Jaitley said here.

In view of the high subsidies being given by developed nations, agriculture produce gets dumped in the domestic market, which results in price depression, he said at an export award function.

The WTO agreement has opened new vistas of trade opportunity for developing countries like India. Removal of distortions in agri-trade is likely to provide a level-playing field for all players alike, which would also provide access to hitherto protected markets, Jaitley said.

Indian agriculture has come a long way from shortages to surplus, he said adding that "now, our challenge is how to manage those surplus".

Exporters could play a crucial role in managing the surplus by means of export through which farmers would be hooked to the global markets, the Minister said.

Agriculture contributes less than 20 per cent to GDP while 60-65 per cent population was dependent on the sector, which explains the huge disparity, he said.

Though the service and manufacturing, which has picked up in the recent past, speaks volumes of India’s success, he said. (PTI)