By NNN-PTI
New Delhi : Pakistan has sought a level- playing field for its farm produce in India as it feels that the agriculture subsidies given by New Delhi is depriving it of the benefits of free trade in the subcontinent.
While reduction in farm subsidies is a common refrain of India in the WTO, New Delhi got a taste of its own medicine when Islamabad raised the issue of trade distorting subsidies during the meeting of Joint Study Group at Commerce Secretary level here last week.
“The Pakistan side proposed to set up a sub-group to address the issue of market access arising out of subsidies extended to the agriculture sector in India,” said the joint statement issued after the talks held within the framework of the Composite Dialogue between the neighbours.
India, which has been complaining that high agriculture subsidies given by rich economies like the US and EU put farmers from developing countries at a disadvantage, said it has “noted” Pakistan’s concern.
While industry officials maintain that India does not provide big subsidies to the farm sector, sources said Pakistan could find an element of subsidy in the minimum support price given to farmers for a number of products including wheat, rice, sugarcane and cotton.
All these items are of interest to Pakistan’s economy, which gets 25 per cent of its GDP from agriculture.
“Pakistan is thinking of the future when it will have surplus in wheat like it has spare capacity in cement at present. There cannot be a better export market for them than India,” an industry official who recently hosted the Pakistani delegation said.