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?
- AIndia should revise its PDS
- BIndia should not be a member of WTO
- CFor India, food security collides with tradeCorrect
- DIndia provides food security to its poor.
Explanation
The passage describes a situation where India's domestic policy of providing minimum support prices (MSPs) and public stockholding for food grains, which are essential for its food security, might exceed the subsidy limits set by the WTO's Agriculture Agreement. This creates a direct conflict between India's goal of ensuring food security and its obligations under international trade rules.
Option C is correct because it precisely captures this dilemma: "For India, food security collides with trade." The passage highlights how India's food security measures (PDS, MSPs) could potentially violate WTO trade rules (subsidy limits), thus demonstrating a collision between these two objectives.
Option A is incorrect because the passage describes a problem; it does not offer a solution or make a recommendation like revising PDS. Option B is incorrect because the passage points out a challenge within WTO membership, not a reason to abandon it. It doesn't suggest India should not be a member. Option D is incorrect because while it states a fact mentioned in the passage, it is only part of the context. The crucial message of the passage is not just that India provides food security, but the problem that arises from doing so in the context of WTO rules.

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