India and Thailand Engage in Dispute over Rice Exports during WTO Talks


Published on: February 29, 2024.

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Tensions Rise Between India and Thailand Over Rice Exports

India, the world’s largest rice exporter in 2023, is facing accusations from Thailand of using “subsidised” rice exports to dominate the global market. The allegations have triggered diplomatic tensions and raised concerns about the impact on global trade relations.

The Thai ambassador to the World Trade Organization (WTO) reportedly accused India of heavily subsidising its rice, giving it an unfair advantage in international export markets. India has strongly refuted these claims, stating that only around 40% of the rice produced in the country is acquired by the government for food security purposes.

Despite export bans, India remained the top rice exporter in the world last year, accounting for about 40% of the global rice trade. However, its share in the global market dropped by 27% due to the rice export bans and other restrictions. This dispute has also brought the issues of public stockholding and agricultural subsidies in global trade discussions to the forefront.

Public stockholding refers to the procurement, storage, and release of food stocks by governments for food security purposes. India has called for a permanent solution for public stockholding at the latest WTO ministerial conference. Western nations, who have been affected by India’s rice export bans, are portraying the country as manipulating international trade by selling subsidised cereal grain. However, Indian officials argue that the current trade terms are biased towards wealthier countries and that a new formula needs to be established.

The outcome of this dispute between India and Thailand could have far-reaching effects on global trade relations and future discussions on agricultural subsidies at the WTO.

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