G/AG/W/234  
 
6 April 2023  
(23-2498) Page: 1/14 
Committee on Agriculture  Original: English  
 
 
CERTAIN MEASURES OF INDIA PROVIDING MARKET PRICE SUPPORT  
TO RICE AND WHEAT  
COMMUNICATION FROM AUSTRALIA, CANADA, PARAGUAY, THAILAND, UKRAINE  
AND THE UNITED STATES OF AMERICA  
PURSUANT TO ARTICLE 18.7 OF THE AGREEMENT ON AGRICULTURE  
1  INDIA'S PROVISION OF SUBSTANTIAL MARKET PRICE SUPPORT FOR RICE AND WHEAT  
1.1.  Using publicly -available sources, the cosponsors (i.e., Australia, Canada, Paraguay, Thailand, 
Ukraine, and the United States of America) have compiled data and informatio n on India 's market 
price support (MPS) for rice and wheat. Further to Article 18.7 of the WTO Agreement on 
Agriculture  (AoA), the cosponsors are providing this information to other Members in the interest of 
promoting transparency surrounding India's MPS policies. This document is for the purpose of 
discussion by World Trade Organization (WTO) Members. Some aspects were necessarily based on 
partial information.  
1.2.  This document addresses marketing years (MY) 2014/15 through 2020/211 - the marketing 
years co vered by India 's domestic support notifications G/AG/N/IND/12, G/AG/N/IND/13, 
G/AG/N/IND/15, G/AG/N/IND/18, G/AG/N/IND/25, and G/AG/N/IND/27. Findings and calculations 
are presented in Part I of the present document. Explanation of the relevant methodology  and 
findings, as well as preliminary discussion of their significance, can be found in Part II.  
1.3.  This document is limited to the specific issues of India's MPS for rice and wheat. The document 
does not attempt to identify the full value of India's Current  Total Aggregate Measurement of 
Support  (AMS) or even the full amount of product -specific domestic support provided for rice and 
wheat.2 The limited scope of this document should in no way be taken to suggest that no additional 
product -specific support wa s provided for rice and wheat in the relevant years, that MPS or other 
types of product -specific domestic support was not provided for other commodities, or that India did 
not provide non -de-minimis  non-product specific domestic support in the years in que stion.  
2  FINDINGS  
2.1.  India appears to be providing significant market price support, both in terms of absolute value 
and as a percentage of the value of production, for rice and wheat. The table below shows apparent 
MPS as an estimated percentage of the value of production for rice and wheat.  
 
1 G/AG/N/IND/12, submitted to the WTO on 1 May 2018, covered the period of MY 2014/15 and 
2015/16. G/AG/N/IND/13, submitted to the WTO on 20 July 2018, covered MY 2016/17. G/AG/N/IND/15, 
submitted to the WTO on 29 March 2019, covered MY 2017/18. G/AG/N/IND/18, submitted to the WTO on 
31 March 2020, covered MY 2018/19. G/AG/N/IND/25, submitted to the WTO on 8 April 2021, covered 
MY 2019/20. G/AG/N/IND/27, submitted to the WTO on 1 April 2022, covered MY 2020/21.  
2 India's own notifications indicate other support for rice exists, but has yet to be notified. Beginning 
with G/AG/N/IND/18, India has notified that "Other support for rice, that is, other than public stockholding for 
food security purposes, will be notified subsequently."  G/AG/W/234  
 
- 2 - 
 
  Apparent MPS as a percentage of the value of production for rice and wheat  
Commodity  MY 
2014/15  MY 
2015/16  MY 
2016/17  MY 
2017/18  MY 
2018/19  MY 
2019/20  MY 
2020/21  
Rice 78.6%  80.7%  81.6%  82.6%  88.4% 90.0%  93.9%  
Wheat  77.7%  65.0%  65.3%  72.4%  70.8%  72.0%  81.3%  
 
3  CALCULATION OF ESTIMATES FOR INDIA 'S MPS FOR RICE AND WHEAT (MARKETING 
YEARS 2014/15 -2020/21)  
3.1.  The following tables show the calculation of estimates for India 's MPS for rice and wheat for 
marketing years 2014/15 -2020/213, both as a value in Indian Rupees and as a percentage of the 
value of production of these crops in India. Notes and sources are the same for all tables, except as 
noted.4  
 
3 The marketing year for rice runs from October through the following September. The marketing year 
for wheat runs from April through the following March.  
4 National -level minimum support prices for rice and wheat can be found at  
https://eands.dacnet.nic.in/PDF/MSP01062016.pdf  (accessed 6 February 2023),  
https://eands.dacnet.nic.in/PDF/MSP -Rabi2018 -19-Eng.pdf  (accessed 6 February 2023 ), and 
https://eands.dacnet.nic.in/PDF/English%20MSP%202021.pdf  (accessed 6 February 2023 ). In these 
government listings, MSPs are listed in Rs per quinta l, resulting in a need to multiply values by 10 to ascertain 
an MSP in Rs per metric tonne. For External Reference Price data, see India Notification, G/AG/AGST/IND 
(undated) at pages 12-13. For state -level production data, see "Agricultural Statistics at a Glance ", obtained 
from India Directorate of Economics and Statistics, Department of Agriculture and Cooperation, for years 20 16, 
2017, 2018, 2019, and 2020 at Tables 4.6(b) for rice, 4.7(b) for wheat, and for year 2021 at Tables 2.4(b) for 
rice, 2.5(b) for wheat, available at http://eands.dacnet.nic.in/  (accessed 6 February 2023 ). For national -level 
production data, see "Third Advance Estimates of Production of Foodgrains for 2021 -22" available at  
https://eands.dacnet.nic.in/Advance_Estimate/Time%20Series%203%20AE%202021 -22%20(English).pdf  
(accessed 6 February 2023).  Wheat MSP and production  information is for wheat harvested and marketed in 
MYs 2014/15 -2019/20 (April -March), but which may have been planted in the prior crop year . Value of 
Production data is from India's National Account Statistics 2022, statement 8.1.2 Crop -wise value of out put, 
available at 
https://www.mospi.gov.in/sites/default/files/reports_and_publication/statistical_publication /National_Accounts
/NAS2022/8.1.2.xlsx  (accessed 28  February 2023) .  
  G/AG/W/234  
 
- 3 - Table 1 - Market Price Support for Rice and Wheat, MY 2014/15  
 Description  of Basic  
Products  Applied  Administered 
Price  External  Reference 
Price  Eligible Production  Total  Market  Price  
Support  VoP MPS/VOP  
  (Rs./MT)  (Rs./MT)  (Million  MT) (Million  Rs.) 
(AAP-ERP)*EP  (Million  Rs.)  
1a Rice‐Common1 (Paddy):  Total 13,600.00  2,346.67  158.22  1,780,502  2,266,440  78.6%  
2 Wheat:  Total 14,000.00  3,540.00  95.85  1,002,591  1,290,110  77.7%  
Note:  
1 
a) India announces a separate minimum support price (MSP) for common paddy rice and Grade A paddy rice. The common variety of ri ce accounts for the major 
share of production and government procurement. India has not made available sufficient data to separate out eligible production (EP) for each variety, and the 
cosponsors have accordingly treated all Indian rice produced in MY 2014/15 -2020/21 as common paddy rice for purposes of these calculations. Because India has 
only a single external reference price (ERP ) for rice, the cosponsors' treatment of all MY 2014/15 -2020/21 as common paddy rice results in understatement of 
India's actual MPS for rice.  
b) India announces an MSP for unmilled paddy rice. India's notified ERP is on a milled rice basis and EP data ar e also on a milled rice basis. EP reported for milled 
rice is multiplied by 1.5 to convert to an equivalent volume of paddy rice, as one unit of milled rice is equivalent to appro ximately 66% of the volume of unmilled 
rice. ERP is converted to an equivalen t price for paddy rice using the same conversion rate.  
Table 2 - Market Price Support for Rice and Wheat, MY 2015/16  
 Description  of Basic  Products  Applied  Administered 
Price  External  Reference 
Price  Eligible 
Production  Total  Market  Price  Support  VoP MPS/VOP  
  (Rs./MT)  (Rs./MT)  (Million  MT) (Million  Rs.) 
(AAP-ERP)*EP  (Million  Rs.)  
1a Rice‐Common1 (Paddy):  Total 14,100.00  2,346.67  156.62  1,840,748  2,281,810  80.7%  
2 Wheat:  Total 14,500.00  3,540.00  86.53  948,369  1,459,390  65.0%  
 
   
  G/AG/W/234  
 
- 4 - Table 3 - Market Price Support for Rice and Wheat, MY 2016/17  
 Description  of Basic  Products  Applied  
Administered Price  External  Reference Price  Eligible Production  Total  Market  Price  Support  VoP MPS/VOP  
  (Rs./MT)  (Rs./MT)  (Million  MT) (Million  Rs.) 
(AAP-ERP)*EP  (Million  Rs.)  
1a Rice‐Common1 
(Paddy):  Total    2,045,430  2,506,020  81.6%  
 MSP and Additional  Bonus2 
 1. Madhya Pradesh3 16,700.00  2,346.67  6.35  91,072    
 All Other States (No bonus)  14,700.00  2,346.67  158.21  1,954,359    
2 Wheat:  Total 15,250.00  3,540.00  92.29  1,080,716  1,655,260  65.3%  
Note:  
2 Various states give an additional bonus over and above the announced rice and wheat MSP ("bonus") in some years.  Market Price Support is rounded to the nearest 
million rupees for each state, and state totals may not add up to national totals due to rounding.  
3 Madhya Pradesh state bonuses for rice for 2016/17 and wheat for 2017/18 and 2018/19 obtained from 
http://mpkrishi.mp.gov.in/hindisite_New/pdfs/MKSY_24042018.pdf  (page 3, accessed 6 February 2023).  
Table 4 - Market Price Support for Rice and Wheat, MY 2017/18  
 Description  of Basic  Products  Applied 
Administered Price  External  Reference Price Eligible 
Production  Total Market Price  Support  VoP MPS/VOP  
  (Rs./MT)  (Rs./MT)  (Million  MT) (Million  Rs.) 
(AAP-ERP)*EP  (Million  Rs.)  
1a Rice‐Common1(Paddy):  Total    2,269,565  2,749,010  82.6%  
MSP and Additional  Bonus2, 4 
 1. Chattisgarh  18,500.00  2,346.67  7.40  119,454    
 2. Kerala5 23,300.00  2,346.67  0.78  16,385    
 3. Tamil  Nadu  16,000.00  2,346.67  9.96  135,987    
 4. Jharkhand6 17,000.00  2,346.67  7.70  112,800    
 All Other  States  (No bonus)  15,500.00  2,346.67  143.31  1,884,939    
2 Wheat:  Total    1,287,942  1,779,450  72.4%  
MSP and Additional  Bonus2 
 1. Madhya  Pradesh3 18,250.00  3,540.00  17.94  263,897    
 All Other  States  (No bonus)  16,250.00  3,540.00  80.57  1,024,045    
Note:  
4 State bonuses for rice for 2017/18 obtained from https://cacp.dacnet.nic.in/ViewReports.aspx?Input=2&PageId=39&KeyId=669  (accessed 6 February 2023).  
5 For 2017 -18 Keral a rice production, see Table 1 on page 31 of "Agricultural Statistics 2017 -2018" available at https://www.ecostat.kerala.gov.in/publication -
detail/report -on-agricultural -statistics -2017-18 (accessed 6 February 2023)  
6 For 2017 -18 through 2020 -21 Jharkhand rice production see "Status of Agriculture in Jharkhand State " available at http://www.sa meti.org/state_profile.php  (accessed 
6 February 2023).   
  G/AG/W/234  
 
- 5 - Table 5 - Market Price Support for Rice and Wheat, MY 2018/19  
 Description  of Basic  Products  Applied 
Administered Price  External  Reference Price  Eligible 
Production  Total Market Price  Support  VoP MPS/VOP  
  (Rs./MT)  (Rs./MT)  (Million  MT) (Million  Rs.) 
(AAP-ERP)*EP  (Million  Rs.)  
1a Rice‐Common1 (Paddy):  Total    2,738,927  3,098,600  88.4%  
MSP and Additional  Bonus2, 7 
 1. Chhattisgarh  25,000.00  2,346.67  9.80  221,889    
 2. Kerala8 25,300.00  2,346.67  0.87  19,909    
 3. Tamil Nadu  18,000.00  2,346.67  9.20  143,932    
 4. Jharkhand6 19,000.00  2,346.67  4.34 72,295    
 All Other States (No bonus)  17,500.00  2,346.67  150.52  2,280,901    
2 Wheat:  Total    1,421,366  2,007,660  70.8%  
MSP and Additional  Bonus2 
 1. Madhya  Pradesh3 20,000.00  3,540.00  15.91  261,879    
 All Other  States  (No bonus)  17,350.00  3,540.00  83.96  1,159,488    
Note:  
7 State bonuses for rice for 2018/19 and 2019/20 obtained from https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=39&KeyId=702  (accessed 6  
February 2023).  
8 For 2018 -19 Kerala rice production, see Table 1 on page 31 of "Agricultural Statistics 2018 -2019" available at https://www.ecostat.keral a.gov.in/publication -
detail/agricultural -statistics -2018-19 (accessed 6 February 2023).  
Table 6 - Market Price Support for Rice and Wheat, MY 2019/20  
 Description  of Basic  Products  Applied 
Administered 
Price  External  Reference 
Price  Eligible Production  Total Market Price  
Support  VoP MPS/VOP  
  (Rs./MT)  (Rs./MT)  (Million  MT) (Million  Rs.) 
(AAP-ERP)*EP  (Million  Rs.)  
1a Rice‐Common1 (Paddy):  Total    2,910,526  3,233,540  90.0%  
MSP and Additional  Bonus2, 7 
 1. Chhattisgarh  25,000.00  2,346.67  10.16  230,045    
 2. Kerala9 26,950.00  2,346.67  0.88  21,666    
 3. Tamil Nadu  18,650.00  2,346.67  10.76  175,342    
 4. Jharkhand6 20,000.00  2,346.67  5.42 95,661    
 All Other  States  (No bonus)  18,150.00  2,346.67  151.10  2,387,812    
2 Wheat:  Total 18,400.00  3,540.00  103.60  1,539,496  2,139,370  72.0%  
Note:  
9 For 2019 -20 Kerala rice production, see Table 1 on page 36 of "Agricultural Statistics 2019 -2020" available at https://www.ecostat.kerala.gov.in/publication -
detail/agricultural -statistics -2019-2020 (accessed 6 February 2023).   
  G/AG/W/234  
 
- 6 - Table 7 - Market Price Support for Rice and Wheat, MY 2020/21  
 Description of Basic Products  Applied 
Administered Price  External 
Reference 
Price  Eligible Production10 Total Market Price 
Support  VoP MPS/VOP  
  (Rs./MT)  (Rs./MT)  (Million MT)  (Million Rs.)  
(AAP-ERP)*EP  (Million Rs.)   
1a Rice‐Common1 (Paddy): Total     3,177,310   3,382,410  93.9%  
MSP and Additional Bonus2, 10, 11 
 1. Chhattisgarh  25,000.00  2,346.67  10.74  243,297    
 2. Kerala12 27,480.00  2,346.67  0.95 23,892    
 3. Tamil Nadu 19,180.00  2,346.67  10.92  183,820    
 4. Jharkhand6 20,500.00  2,346.67  7.68 139,502    
 5. Maharashtra13 25,680.00  2,346.67  4.94 115,192    
 All Other States (No bonus)  18,680.00  2,346.67  151.32  2,471,608    
2 Wheat: Total     1,725,857  2,122,630  81.3%  
MSP and Additional Bonus  
 1. Madhya Pradesh14 20,850.00  3,540.00  19.61  339,449    
 All Other States (No bonus)  19,250.00  3,540.00  88.25  1,368,408    
 
Note:  
10 State bonuses for rice for 2020/21 in Chhattisgarh, Kerala, Tamil Nadu, and Jharkhand obtained from page 50 of 
https://cacp.dacnet.nic.in/ViewQuestionare.as px?Input=2&DocId=1&PageId=39&KeyId=773  (accessed 6 February 2023).  
11 State bonus for rice for 2020/21 in Maharashtra obtained from https://www.maharashtra.gov.in/Site/upload/CabinetDecision/Marathi/24 -11-
2020%20Cabinet%20Decision%20(Meeting%20No.45).pdf  (accessed 04 April 2022).  
12 For 2020 -21 Kerala rice production, see Table 1 on page 40 of "Agricultural Statistics 20 20-2021" available at https://www.ecostat.kerala.gov.in/publication -
detail/agricultural -statistics -2020-21 (accessed 6 February 2023).  
13 For 2020 -21 Maharashtra rice production, see "Final Advance Estimates of Area, Production & Productivity of Crops in Respect of Maharashtra State for the Year 2020 -
21," available at https://krishi.maharashtra.gov.in/Site/Upload/GR/STATE_APY_2020_21.pdf  (accessed 6 February 2023).  
14 State bonus for wheat for 2020/21 for Madhya Pradesh obtained from page 30 of https://cacp.dacnet.nic.in/ViewReports.aspx?Input=2&PageId=40&KeyId=682  
(accessed 6 February 2023).  
 
 
 
 
 
 G/AG/W/234  
 
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  4  EXPLANATION OF APPARENT FINDINGS  
4.1  INDIAN EXPORTS AND DOMESTIC SUPPORT  
4.1.  Since 2014, India is the world's second largest agricultural producer, up from the third largest 
in 2013.5 India's agricultural exports in 2020 were worth USD  39 billion and India was the world's 
ninth largest agricultural exp orter.6 India's agricultural export growth of 65 % from 2010 -2020 has 
been supported by India 's rice exports, which increased by 244 % over the same period, accounting 
for 24 % of all Indian agricultural exports, by value.7 India is also a particularly sign ificant player in 
the international market for rice. Since 2012, in each year for which statistics are available, India 
exported more rice than any other country, annually accounting for approximately 40 % of worldwide 
exports.8 These exports have, for man y years, amounted to over 20% of India's domestic 
production.9  
4.2.  In addition to being a major agricultural producer, India is also a major provider of agricultural 
domestic support. India 's most recent domestic support notification  covered under this document  
included more than USD 44 billion in trade -distorting domestic support under Article 6 of the AoA10, 
and India has been one of the top notifiers of Article 6 support for many years.11 While India provides 
a variety of domestic support to its producers, input subsidies and minimum support prices (MSPs) 
appear to be the primary support mechanisms. This sup port appears to have contributed to 
expanding production and government stocks, coinciding with increased exports.  
4.2  RELATIONSHIP OF MPS TO CURRENT TOTAL AMS  
4.3.  Article 7, paragraph 2 of the AoA states that "[w]here no Total AMS commitment exists in 
Part IV of a Member's Schedule, the Member shall not provide support to agricultural producers in 
excess of the relevant de minimis  level set out in paragraph 4 of Article 6". India has no Total AMS 
commitment in Part IV of its Schedule (XII).  
4.4.  Annex 3 of the AoA ide ntifies support that "shall" be included in a Member's AMS calculation. 
It states that "an Aggregate Measurement of Support (AMS) shall be calculated on a product specific 
basis for each basic agricultural product receiving market price support, non exempt  direct 
payments, or any other subsidy not exempted from the reduction commitment ("other non -exempt 
policies")".12 Thus, the AoA states that "market price support" in favor of basic agricultural products 
is a form of non -exempt domestic support and must b e included in a Member's AMS calculation.  
4.5.  Article 6, paragraph 4 of the AoA provides an exemption from inclusion in Total AMS of 
product -specific domestic support of less than 5% of the total value of production of a basic 
agricultural product during a rel evant year, or 10% for a developing country. Accordingly, if India 
provides product -specific domestic support, including MPS, for a specific basic agricultural product 
in excess of 10% of the value of production for that crop during a given year, India wil l be in breach 
of its AMS commitments under the AoA.  
 
5 "Production -Value of Agricultural Production, " FAOSTAT, available at, http://www.fao.org/  (accessed 
6 February 2023).  Values reported in current US D and available through 2020.  
6 See WTO World Trade Statistical Review 2021 , Table A14 at page 69, available at, 
https://www.wto.org/english/res_e/statis_e/wts2021_e /wts2021chapter05_e.pdf . 
7 India Ministry of Commerce data, accessed through Trade Data Monitor (TDM) using Harmonized Tariff 
Schedule (HTS) code 1006.  
8 Indian and global export data obtained from IHS GTA using Harmonized Tariff Schedule (HTS) 
code 1006.  
9 The cosponsors calculate India's exports of rice as a percentage of domestic production by dividing 
India's exports of rice at HTS code 1006, as reported by TDM, by the total value of production of rice, as 
reported at current prices in India's National Accounts Statistics 2021 and converted into U.S. Dollars (USD) 
using the 2020 annual exchange rate of 74.102 Rs. to 1 USD sourced from the U.S. Federal Reserve. India's 
exports of rice, as a percentage of domestic production, equalled  21.27%, 17.38%, 21.65 %, 20.38%, 16.41%, 
and 18.12% in 2015, 2016, 2017, 2018, 2019, and 2020, respectively.  
10 G/AG/N/IND/27 . 
11 JOB/AG/219 . 
12 See AoA, Annex 3, paragraph 1 (emphasis added).  G/AG/W/234  
 
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  4.3  PRINCIPLES FOR CALCULATING  MPS 
4.6.  Annex 3, paragraph 1 of the AoA provides that AMS "shall be calculated on a product -specific 
basis for each basic agricultural product receiving market price support, non -exempt direct 
payments, or any other subsidy not exempted from the reduction commitment".13 Annex 3 further 
provides a specific calculation methodology for determining the value of "market price support."  
4.7.  Pursuant to Annex 3, paragraph 8 of the AoA:  
[M]ark et price support shall be calculated using the gap between a fixed external 
reference price and the applied administered price multiplied by the quantity of 
production eligible to receive the applied administered price.  
4.8.  Thus, "market price support" require s a comparison between the "applied administered 
price"  (AAP) and the "fixed external reference price". An AAP would be a price that is dispensed or 
provided by a governmental scheme.14 The "fixed external reference price" is defined in Annex 3, 
paragraph 9, which states that this price "shall be based on the years 1986 to 1988".15 The difference 
between the AAP and fixed external reference price is then multiplied by the "quantity of production 
eligible to receive the applied administered price." 16 
4.9.  The ca lculation methodology provided in Annex 3, paragraph 8, for market price support is 
reflected in the following equation:  
(Applied Administered Price – Fixed External Reference Price) * Quantity of Production 
Eligible = Value of Market Price Support  
The Ap pellate Body in Korea – Beef reached the same understanding of the meaning of "market 
price support" under Annex 3, paragraph 8.17 
4.10.  The MPS calculation methodology contained in Annex 3, paragraph 8, of the AoA directs that 
the established price gap be multi plied "by the quantity of production eligible to receive the applied 
administered price."18 The ordinary meaning of the terms indicates that "eligible production" is all of 
the production entitled or permitted to receive the administered price. It is the a mount of agricultural 
production that has the rightful claim to receive the AAP, whether or not that amount of production 
actually received the specified AAP.19 
4.11.  The Appellate Body in Korea – Beef considered the meaning of the phrase "quantity of 
production eligible to receive the applied administered price" and reached a similar understanding.20 
The Appellate Body stated that "production eligible to receive the applied administered price" has "a 
different meaning in ordinary usage from 'production actually purchased.'"21 The Appellate Body 
further defined "eligible" as that which is "fit or entitled to be chosen ."22 It noted that "[p]roduction 
 
13 See AoA, Annex 3, paragraph 1.  
14 Of relevance, "administer" is defined as to "execute or dispense", or to "furnish, supply, give (orig. 
something beneficial to)". Shorter Oxford English Dictionary , "administer" p. 28 (ed. 1993).  
15 See AoA, Annex 3, paragraph 9. See also AoA, Annex 3, para graph 7 (stating that the "AMS shall be 
calculated as close as practicable to the point of first sale of the basic agricultural product concerned"). India 
notified its External Reference Prices (ERPs) for rice and wheat to the WTO in document G/AG/AGST/IND  
(undated). They are 3540 rupees/MT for wheat and 3520 rupees/MT for milled rice. Because India maintains 
an AAP for paddy rice as opposed to milled rice, despite having notified an external reference price for milled 
rice, this document converts India's E RP to a paddy basis using a conversion factor of 1.5, consistent with 
industry practice. This results in an ERP for paddy rice of 2346.67 rupees/MT. India uses the same conversion 
factor of 1.5. See G/AG/N/IND/10 p. 8 and G/AG/N/IND/11 p. 6.  
16 AoA, Annex 3 , paragraph 8.  
17 See e.g., Appellate Body Report, Korea – Measures Affecting Imports of Fresh, Chilled, and Frozen 
Beef, WT/DS161/AB/R, WT/DS169/AB/R , adopted 10 January 2001 ( Korea – Beef (AB)), para. 116.  
18 See AoA, Annex 3, paragraph 8.  
19 See also Short er Oxford English Dictionary , "entitled", p. 830 (ed. 1993) ("Now (chiefly of 
circumstances, qualities, etc.) confer on (a person or thing) a rightful claim to something or a right to do." 
(emphasis original)); Shorter Oxford English Dictionary , "fit", p. 960 (ed. 1993) ("Be suited to or appropriate 
for;" "Meet the requirements of").  
20 See Korea – Beef (AB), para. 120.  
21 See Korea – Beef (AB), para. 120 (emphasis in original).  
22 See Korea – Beef (AB), para. 120.  G/AG/W/234  
 
- 9 - 
 
  actually purchased may often be less than eligible production."23 Thus, "eligible production" within 
the meaning of Annex 3, paragraph 8 of the AoA is production, which is fit or entitled to receive the 
applied administered price, whether or not the production was actually purchased.24 
4.4  INDIA'S MPS  REGIME FOR RICE AND WHEAT  
4.12.  India's Commission for Agricultural Costs and Prices (CACP) devises "price policy and relative 
price structure" for approximately two dozen agricultural commodities.25 The Agricultural Prices 
Commission (APC), the predecessor to the CACP, was originally established in 1965 by the Ministry 
of Food and Agriculture (MOA) to "advise on the price policy of agricultural commodities…  with a 
view to evolving a balanced and integrated price structure…."26 The mandate of CACP and the 
produc ts for which it sets MSP levels are determined through a "terms of reference" document 
established through ministerial resolution.27 The resolution governing the current operation of the 
CAPC states:  
…Terms of Reference of the Commission would be as under : 
To advise on the price policy of paddy/rice, wheat, jowar, bajra, maize, ragi, 
barely  {sic}, gram, tur, moong, urad, sugarcane, groundnut, soyabean, sunflower seed, 
rapeseed, mustard, cotton, jute, tobacco, sesamum, nigerseed, lentil (masur), 
safflower, copra and such other commodities as the Government may decide from time 
to time, with a view to evolving a balanced and integrated price structure in the 
perspective of the overall needs of the economy and with due regard to the interests of 
the producer a nd the consumer.28 
4.13.  CACP submits price policy reports to India's Cabinet Committee on Economic Affairs  (CCEA), 
which then announces final decisions on the levels of MSPs in periodic press releases.29 These CCEA 
press releases are issued three times a year b y crop type: Kharif (June), Rabi and Toria crops 
(October/November). The Food Corporation of India (FCI), the Cotton Corporation of India  (CCI), 
the Jute Corporation of India (JCI), and the National Agricultural Cooperative Federation of 
India (NAFED), as well as analogous state agencies, play a role in procuring the relevant agricultural 
products.30 
 
23 See Korea – Beef (AB), para. 120.  
24 See Korea – Beef (AB), para. 120; see also Panel Report, Korea – Measures Affecting Imports of 
Fresh, Chilled, and Frozen Beef, WT/DS161/R, WT/DS169/R, adopted 10 January 2001, as modified by 
Appellate Body Report  WT/DS161/AB/R, WT/DS16 9/AB./R , (Korea – Beef (Panel)), para. 827 (noting that 
"eligible production for the purposes of calculating the market price support component of current support 
should comprise the total marketable production of all producers which is eligible to benefit  from the market 
price support, even though the proportion of production which is actually purchased by a governmental agency 
may be relatively small or even nil").  
25 See "Organisation", Commission for Agricultural Costs and Prices, available at, 
http://cacp.dacnet.nic.in/content.aspx?pid=32  (accessed 6 February 2023) and "The Terms of Reference of the 
Commission vide Ministry of Agriculture (Department of Agriculture and Cooperation)'s Resolutio n 
No. 49011/6/2009 -EA dated 30.7.2009", available at, 
https://cacp.dacnet.nic.in/ViewContents.aspx?Input=1&PageId=33&KeyId=0  (accessed 6 February 2023). 
CACP states that  it sets prices for 23 agricultural commodities on its web site. However, the manner in which 
products are counted can affect the total count of products subject to the MPS regime.  
26 See Department of Food and Agriculture, Ministry of Food and Agriculture Resolution No. 6 -2/65, 
8 January 1965, available at, 
http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=34&KeyId=247  (accessed 
6 February 2023).  
27 See Department of Agriculture and Cooperation, Ministry of Agriculture and Cooperation, Resolution F 
No. A 49011/6/2009 -EA, 30 July 2009, available at, 
http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=34&KeyId=247  (accessed 
6 February 2023).  
28 See "Resolution", Department of Agriculture, Ministry of Agriculture and Cooperation F 
No. A 49011/6/2009 -EA, 30 July 2009, p. 1, available at, 
http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=34&KeyId=247  (accessed 
6 February 20 23). 
29 See "Organisation", Commission for Agricultural Costs and Prices, available at, 
http://cacp.dacnet.nic.in/content.aspx?pid=32  (accessed 6 February 2023).  
30 See "Organisation", Commission for Agricultural Costs and Prices, available at, 
http://cacp.dacnet.nic.in/content.aspx?pid=32  (accessed 6 February 2023).  G/AG/W/234  
 
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  4.14.  India does not cap the quantity of rice and wheat that the government may procure under its 
MPS programmes. Accordingly, under the terms of the AoA, all Indian  production of these 
commodities constitutes eligible production for purposes of ascertaining the level of India's MPS for 
rice and wheat.31 
4.15.  In addition to the minimum support price announced by India's central government, certain 
Indian states have, in ce rtain years, instituted higher support prices within their states. These states 
pay the increased price on quantities tendered to state agencies as part of the MPS regime. These 
higher prices accordingly apply to all production of rice and wheat occurring within the state.  
4.5  DIFFERENCES WITH INDIA'S CALCULATIONS  
4.16.  India's notifications  for the years at issue appear to dramatically under -report the value of 
India's MPS for rice and wheat. For example, India's notification for MY 2014/15 showed a value of 
support  converted from U.S. dollars of Rs. 139,388 million for rice and negative Rs.  45,988  million 
for wheat.32 By comparison, the cosponsors estimate that MPS was Rs.  1,780,502  million for 
MY 2014/15 for rice and Rs. 1,002,591 million for MY 2014/15 for wheat. The differences between 
India's reported figures and the apparent actual figures for other years are of similar magnitude. 
They can be seen in the chart at the end of section 4.5. 5. 
4.5.1   Currency  
4.17.  India's AGST document provides India's domestic support commitments in Indian rupees. 
However, all of India's DS:1 notifications have been denominated in U.S. dollars. India has not 
explained the basis for using U.S. dollars beyond stating it has remained consistent in its 
notifications. To be consistent with India's scheduled commitments, the cosponsors have calculated 
India's MPS using information published by the GOI in Indian rupees.  
4.5.2   Eligible Production  
4.18.  India's domestic support notifications G/AG/N/IND /12, G/AG/N/IND/13, G/AG/N/IND/15, 
G/AG/N/IND/18, G/AG/N/IND/25, and G/AG/N/IND/27 appear to reflect only volumes actually 
purchased pursuant to the MPS programme. This is different from the methodology India used 
previously to notify eligible production. India's AGST document and first DS:1 notification, for 
MY 1995/96, relied on total production as India's eligible production for similar market price support 
programmes.33  
4.19.  While India has acknowledged this change in methodology, it has not provided a spec ific 
explanation for this change, as seen in India's response in the CoA to AG -IMS ID 63058. In other 
responses to questions in the CoA, such as AG -IMS ID 63058 and AG -IMS ID 67028, India has stated 
that the reason for its use of the procured quantity as e ligible production is that the only farmers to 
benefit from the MSP are those whose product is procured by a government agency.  
4.20.  The cosponsors were unable to identify any change in India's MPS programme between 
1995/96 and 1996/97 that would explain the ch ange in notification methodology. To the contrary, 
records indicate that during MY 1996/97, the Indian Ministry of Agriculture's Commission for 
Agricultural Cost and Prices was recommending that procurement agencies continue to improve on 
 
31 The Indian Government appears to maintain a policy of purchasing all tendered rice and wheat 
despite the existence of certain guidelines that might otherwise impose certain limitations on purchases. For 
instance, while the GOI has published certain quality standards, it does not appear that these quality standards 
are adher ed to. India's own Comptroller and Auditor General found that the FCI had not established any 
mechanism to ensure that rice conformed to the prescribed food safety standards at the procurement stage. 
See Ministry of Consumer Affairs, Food and Public Distri bution, "Report of the Comptroller and Auditor General 
of India on Procurement and Milling of Paddy for the Central Pool", Report No. 31 of 2015, available at, 
https://cag.gov.in/uploads/download_audit_report/2015/Union_Performance_Procurement_Milling_of_Paddy_C
entral_Pool_31_2015_chap_3.pdf , pages 43 -44 (accessed 6 February 2023). No more recent audit on the 
same topic is available.  
32 India notified MY 2014/15 values of -USD 752.12 million for wheat and USD 2279.66 million for rice. 
The cosponsors convert India's notified MPS values for MY 2014/15 in million USD to million Rs. using India's 
notified exchange ra te for 2014 -15 of 61.144 Rs. to 1 USD.  
33 See India Notification, G/AG/N/IND/1 (1998).  G/AG/W/234  
 
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  their readiness t o meet their obligation to "buy all quantities of the produce offered by the farmers 
at that [MSP or applied administered] price".34 
4.21.  More importantly, India's reporting of only procured quantities is directly contrary to the MPS 
calculation methodology req uired by AoA Annex 3, paragraph 8, which provides for the calculation 
to be based on all production eligible for the price, whether or not actually procured by a Member's 
government at that price. Accordingly, the cosponsors have estimated MPS here based o n all eligible 
production, as opposed to just that portion of production actually procured by government entities 
in India.  
4.5.3   Inclusion of State Level Bonuses in Applied Administered Price  
4.22.  It is not clear whether India's MPS notifications, including for ric e and wheat, reflect only the 
national minimum support prices or also include all state bonuses and other incentives that further 
increase the MSP provided to farmers. For rice and wheat, additional state -funded "incentive 
bonuses" have been provided in ad dition to the federal -level "minimum support prices" in certain 
Indian states.35 Rice and wheat procured by the government in specified states was purchased from 
producers at the announced minimum support price plus the announced state bonus, which appears  
to effectively increase the floor price in those states.36 
4.5.4   Value of Production  
4.23.  India has not notified total value of production (VoP) for any commodity in its domestic 
support notifications for the years 2014/15 through 2017/18. In G/AG/N/IND/18 India in dicated that 
VoP for rice was USD 43,673.29 million for 2018/19. In G/AG/N/IND/25 India indicated that VoP for 
rice was USD  46,077.31 million for 2019/20. In G/AG/N/IND/27 India indicated that VoP for rice was 
USD 45,569.62 million for 2020/21. India provi ded unsourced VoP data for 2016/17 and 2017/18 
for rice and wheat in response to questions posed to it in the WTO Committee on Agriculture37 These 
figures differ from those drawn from India's National Accounts Statistics. The 2014/15 and 2015/16 
VoP data f or rice as well as the 2014/15 through 2015/16 and 2018/2019 through 2020/21 VoP data 
for wheat38 In addition to showing its notified MPS as a percentage of the Value of Production 
identified from India's National Accounts Statistics, the table below also shows MPS as a percentage 
of the Values of Production in 2018/19 -2020/21 notifications and offered by India without sourcing 
in response to the CoA .39 
 
34 See CACP, "Reports of the Commission on Agricultural Costs and Prices for Crops Sown in 1995 -96 
Season and 1996 -97 Season," 1997, page 332, available at 
http://cacp.dacnet. nic.in/ViewReports.aspx?Input=2&PageId=63&KeyId=334  (accessed 6 February 2023).  
35 See GOI Ministry of Agriculture and Farmers Welfare (Minimum Support Price (MSP) as on 
29-10-2014): https: //eands.dacnet.nic.in/Archive/MSP29102014.pdf  (accessed 6 February 2023).  
36 According to a Government of India Report ("Price Policy for Rabi Crops: The Marketing Season 
2013-14"), state -level support can be quite significant and can lead to state take -over of certain commodity 
markets. CACP, "Price Policy for Rabi Crops: The Marketing Season 2013 -14", pp. 21 -22. 
http://cacp.dacnet.nic.in/ViewQuestionare.aspx? Input=2&DocId=1&PageId=40&KeyId=471  (accessed 6 
February 2023). One example highlighted by the report notes that, with respect to wheat, the introduction by 
Madhya Pradesh of a state bonus (of Indian Rupees 100/100kg) in addition to the MSP in 2007/08 resu lted in a 
dramatic increase in state government procurement levels. State procurement increased from 0.8% of wheat 
produced in 2006/07 to 85% in 2011/12. On a national level, wheat procurement as a percentage of 
production increased from approximately 12% to 30% during the same period. The result of the state bonus, 
according to the report, was a crowding out of the private sector and the government becoming "virtually a 
monopsonist" in the wheat market, which is "not healthy for long term efficiency in pro curement operations as 
well as for farmers."  Also, according to another Government of India Report ( "Price Policy for Rabi Crops: The 
Marketing Season 2020 -21"), Madhya Pradesh announced a bonus of 160 rupees per quintal for 2019 -20. 
CACP, "Price Policy fo r Rabi Crops: The Marketing Season 2020 -21," p. 30. 
https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&DocId=1&PageId=40&KeyId=682  (accessed 
6 February  2023).  
37 AG-IMS ID 91174 (25 June 2019) states that 2017/18 VoP for rice was USD 42,234.29 million and 
2017/18 VoP for wheat was USD 26,993.18 million. AG -IMS ID 88110 (25 September 2018) states that 
2016/17 VoP for rice was USD 37,855 million and 2016/17 VoP for wheat was USD 24,646 million.  
38 For MY 2014/15 -20/21, see India National Accounts Statistics 2022 at Statement 8.1.2, current prices 
section, available at, 
https://www.mospi.gov.in/sites/default/files/reports_and_publication/statistical_publication/National_Accounts
/NAS2022/8.1.2.xlsx  (accessed 28 February 2023).  
39 AG-IMS ID 75019 and AG -IMS ID 850 43. G/AG/W/234  
 
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  4.5.5   Overall Results  
4.24.  The chart below compares India's reported MPS for rice and wheat with what appears to be 
its actual  MPS for rice and wheat:   
  G/AG/W/234  
 
- 13 - India 's Notified MPS Relative to the Cosponsors ' Calculations of India 's MPS40 
 MY 2014/15  MY 2015/16  MY 2016/17  MY 2017/18  MY 2018/19  MY 2019/20  MY 2020/21  
Rice    
India 's Notified MPS by Value  
(U.S. dollars, millions  
Indian Rupees, millions ) USD 2,279.66  
 
Rs. 139,388  USD 2,030.96  
 
Rs. 132,965  USD 2,524.19  
 
Rs. 169,302  USD 3,745.04  
 
Rs. 241,386  USD 5,004.97  
 
Rs. 34,9962  USD 6,317.52  
 
Rs. 447,893  USD 6,908.60  
 
Rs. 512,825  
India 's Notified MPS as % of VoP provided  
by India41 N/A N/A 6.67%  8.87%  11.46%  13.71%  15.16%  
 
Cosponsors ' Calculations of  MPS by Value  
(Indian Rupees, millions)  Rs. 1,780,502  Rs. 1,840,748  Rs. 2,045,430  Rs. 2,269,565  Rs. 2,738,927  Rs. 2,910,526  Rs. 3,177,310  
Cosponsors ' Calculations of  MPS as % of VoP42 78.6%  80.7%  81.6%  82.6%  88.4% 90.0%  93.9%  
Wheat     
India 's Notified MPS by Value  
(U.S. dollars, millions  
Indian Rupees, millions ) USD (752.12)  
 
Rs. (45988)  USD (871.66)  
 
Rs. (57067)  USD (841.15)  
 
Rs. (56418)  USD 159.68  
 
Rs. 10292  USD (30.53)  
 
Rs. (2135)  USD 256.70  
 
Rs. 18199  USD 81.10  
 
Rs. 6020  
India 's Notified MPS as % of VoP stated by 
India in Answer to CoA Question43  N/A N/A (3.41%)  0.59%  N/A N/A N/A 
 
Cosponsors ' Calculations of  MPS by Value  
(Indian Rupees, millions)  Rs. 1,002,591  Rs. 948,369  Rs. 1,080,716  Rs. 1,287,942  Rs. 1,421,366  Rs. 1,539,496  Rs. 1,725,857  
Cosponsors ' Calculations of  MPS as % of VoP44 77.7%  65.0%  65.3%  72.4%  70.8%  72.0%  81.3%  
 
 
40 Monetary values indicated in million Rs. India's Notified MPS values for MY 2014/15 -15/16 obtained from G/AG/N/IND/12 (1 May 2018). India's Notified MPS values for 
MY 2016/17 obtained from G/AG/N/IND/13 (20 July 2018). India 's Notified MPS values for  MY 2017/18 obtained from G/AG/N/IND/15 (29 March 2019). India 's Notified MPS values 
for MY 2018/19 obtained from G/AG/N/IND/18 (31 March 2020). India 's Notified MPS values for MY 2019/20 obtained from G/AG/N/IND/25 (8 April 2021). India 's Notified MSP 
values for MY 2020/21 obtained from G/AG/N/IND/27 (1 April 2022).  Parentheses indicate negative values. The cosponsors convert their calculations of India's Notified MPS values 
in million USD to million Rs. using India's notified exchange rates for MY 2014 -15 (61.14 Rs. to 1 USD), 2015 -16 (65.47 Rs. to 1 USD), 2016 -17 (67.07 Rs. to 1 USD), 2017 -18 
(64.45 Rs. to 1 USD), 2018 -19 (69.92 Rs. to 1 USD), 2019 -20 (70.90 Rs. to 1 USD) and 2020 -21 (74.23 Rs. to 1 USD).  
41 As noted above, India has not notified VoP for a ny commodity in its domestic support notifications  for MY 2014/15 through MY 2017/18 . Calculations in this row use 
unsourced VoP data provided in response to two question s posed to India in the WTO  Committee on Agriculture (CoA)  and VoP data provided by In dia in G/AG/N/IND/18, 
G/AG/N/IND/ 25, and G/AG/N/IND/27.  Use of VoP data sourced from India's National Accounts Statistics produces similar results. For each relevant year, India's n otified MPS as a 
percentage of the VoP figure from the National Accounts St atistics is: 6. 15% (201 4/15); 5.83% (201 5/16); 6.76% (201 6/17); 8.78% (201 7/18); 11.34% (2018/19), 13.71% 
(2019/20), 15.16% (2020/21) .  
42 VoP from India's National Accounts Statistics. Figures for the cosponsors ' calculat ions of MPS as a percentage of the VoP identified by India are similar: 80.56% 
(2016/17); 83.3 7% (2017/18); 89.69% (2018/19); 89. 10% (2019/20); 91. 94% (2020/21).  
43 Calculat ions in this row use unsourced VoP data provided in response to a question posed to it in the WTO Committee on Agriculture (C oA). Use of VoP data sourced from 
India's National Accounts Statistics produces similar results. For each relevant year, India's no tified MPS as a percentage of the VoP figure from the National Accounts Statistics is: 
-3.56%  (2014/15); -3.91% (201 5/16); -3.41% (201 6/17); 0.58% (2017/18); -0.11% (2018/19); 0.78% (2019/20); 0.28% (2020/21) .  
44 VoP from India's National Accounts Statisti cs. Figures for the cosponsors ' calculat ions of MPS as a percentage of the VoP identified by India in response to a CoA question 
are similar: 6 5.38% (201 6/17); 73.79% (201 7/18).  G/AG/W/234  
 
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  5  CONCLUSION  
5.1.  It appears that India provides market price support for rice and wheat vastly in excess of what 
it has reported to the WTO. India's apparent MPS for rice appears to have been over 78% of the 
value of production in each of the last seven years for which India has notified data. Its apparent 
MPS for wheat appears to have been over 65% of the value of production in each of the yea rs. 
5.2.  The cosponsors look forward to future discussion of the significance of India 's MPS for rice and 
wheat for both India 's market and for world markets – both with India and with other Members.  
__________