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Public Stockholding of Food in India: Can it Distort International Trade?

Publisher: Centre for WTO Studies

Concerns have been raised in WTO negotiations over the possible distortion of international trade on account of India’s grain stocks and use of India’s stocks for dumping in African markets. The present study attempts to examine this issue by analyzing India’s production, stocking and export patterns over the last decade. The study also analyzes the likely grain requirements under the National Food Security Act in order to assess the prospects of exportable surplus. The findings suggest that India is unlikely to possess the requisite exportable surplus to distort international trade and India’s grain export patterns to Africa during the last decade show little or no evidence of dumping in the African markets.

Author(s): C.S.C Sekhar, Rashmi Banga | Views(190)

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