Why Do Punjab Farmers On Protest Want India To Exit WTO? | Explained
According to the protesting farmers, WTO rules favour developed nations, harming Indian small-scale farmers by threatening food security, livelihoods, and agriculture, particularly in Punjab, through restrictive policies and agreements
The farmers’ agitation on the borders of Punjab and Haryana has entered its eleventh month. The farmers’ movement began on February 13, 2024 at Khanauri (Sangrur district) and the Shambhu border (Patiala district) near the Haryana border.
This movement started with various demands including making a law to guarantee minimum support price (MSP) for all crops. But now their demands have gone beyond this.
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The movement, initiated under the banner of the non-political Samyukta Kisan Morcha, has brought to the forefront demands for agricultural reforms. Jagjit Singh Dallewal, a prominent farmer leader associated with the movement, has been on a hunger strike at the Khanauri Kisan Morcha for several days. His primary demand is a legal guarantee of minimum support price (MSP) for 24 crops.
Farmers, particularly those from Punjab, have intensified their calls for India’s withdrawal from the World Trade Organization (WTO) and the suspension of all free trade agreements falling under the Agriculture Agreement. They contend that WTO rules disproportionately benefit developed countries, while many aspects of the agriculture agreement are detrimental to the interests of small-scale Indian farmers.
In February 2024, farmers in Punjab observed ‘Quit WTO Day’. They claimed that World Trade Organisation (WTO) policies threaten India’s food security, small farmers and their livelihoods, especially in Punjab.
Why is there a demand to withdraw from WTO?
According to the protesting farmers, the WTO’s agriculture agreement, implemented to reduce agricultural subsidies and create a more equitable trading system, is fundamentally biased against developing countries like India. The agreement covers agricultural products but excludes forest produce, fisheries and products like jute and coir.
According to an Indian Express report, Jagmohan Singh, general secretary of Bhartiya Kisan Union, said that WTO rules favour developed countries, allowing them to provide high subsidies to their farmers. He added that these rules restrict India’s domestic support programmes such as the minimum support price (MSP) and subsidies.
Rural economy may be in danger
Jagmohan Singh criticized the central government for the lack of strong representation in WTO meetings. He accused the leaders of accepting the unfair practices of developed countries. He said that countries like the United States continue to provide disproportionately high subsidies under cleverly classified schemes while pressuring developing countries to reduce MSP.
Jagmohan Singh stressed that failure to deal with these issues could put India’s food security programs, small farmers’ income and rural economy at risk.
Heavily dependent on wheat and paddy
Punjab’s agricultural economy is heavily dependent on wheat and paddy. Public procurement of these crops under the Minimum Support Price (MSP) system forms the backbone of the state’s agricultural structure.
About 90% of Punjab’s Rabi and Kharif crops are purchased under the MSP system. These purchases contribute 80% to the central pool of rice and wheat. Consequently, WTO rules restricting subsidies and public procurement jeopardise the livelihood of the farmers who produce these crops.
These restrictions also weaken the Public Distribution System (PDS), which ensures rations for millions of Indians, especially those living below the poverty line.
Harmful for Small Farmers
Small farmers constitute 86 per cent of India’s agricultural population and are especially vulnerable. They lack access to modern technology, markets, and financing.
According to experts, liberalised global trade under WTO rules exposes them to unfair competition and cheap imports. This, in turn, can destabilise rural economies and threaten ecology, livelihoods, and food security.
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