Removal of subsidies on cotton to benefit Indian exports: Government

NEW DELHI: The decision taken at the World Trade Organisation’s 2015 Nairobi Ministerial to eliminate export subsidies on cotton will benefit Indian shipments of the crop, the government said on Wednesday. “…it will create a level playing field for our farmers, who were not entitled for it but other developed countries were providing the same as scheduled, as per the rules,” the commerce department said.

The Nairobi Ministerial decision on cotton and export competition resulted in a commitment by developed countries to immediately eliminate their export subsidies, while developing countries were required to do so by January 1, 2017.

However, India is not a major user of export subsidies and as per notifications to the WTO, the country has not provided any financial support for cotton between FY07 and FY10.