UPSC Prelims 2018 CSAT Paper II · Q53 of 58 Comprehension medium

Passage

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?

  1. (a) India should revise its PDS.
  2. (b) India should not be a member of WTO.
  3. (c) For India, food security collides with trade. ✓ UPSC's answer
  4. (d) India provides food security to its poor.

Why the answer is (c)

• The passage states that India is bound by WTO agreements, specifically Article 6 of the Agriculture Agreement, which limits agricultural subsidies to 10% of production value for developing countries.

• It notes that India's Public Distribution System (PDS) involves minimum support prices and public stockholding, which are considered trade-distorting under these rules.

• The text highlights a specific conflict: in some years, the subsidy to producers under the PDS may exceed the 10% limit permitted by the WTO.

• This creates a direct tension between India's domestic obligation to provide food security through the PDS and its international trade obligations under the WTO.

• Therefore, the crucial message is that for India, the goal of food security collides with the constraints of international trade agreements.

Why the other options are wrong

(a) India should revise its PDS.
The passage identifies a conflict between PDS and WTO rules but does not explicitly recommend revising the PDS as the crucial message.
(b) India should not be a member of WTO.
The passage does not suggest that India should leave the WTO; it only notes that India is bound by the agreements it has signed.
(d) India provides food security to its poor.
While the PDS provides food security, the passage's focus is on the potential violation of WTO subsidy limits, not merely the existence of food security.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2018, held on 3 June 2018. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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