New Delhi: Asserting there was no pressure on India to reduce agricultural subsidies, Government today (Dec 8, 2003) told Rajya Sabha that G-21 countries would hold a meeting on December 12 in Rio de Janeiro in Brazil to sort out contentious issues in the farm sector.

Replying to supplementaries during Question Hour, Commerce and Industry Minister Arun Jaitley said he was given to understand that the G-21 meeting would be an extended one and would be attended by representatives of the European Union besides the Director General of WTO (World Trade Organisation).

Jaitley said an official-level meeting of the WTO would also be held in Geneva on December 15 where agriculture and Singapore issues relating to trade and investment would be discussed.

The Minister said while subsidies in the country were well within WTO stipulations, India and other developing countries opposed trade distorting agriculture and farm-export subsidies as these would depress international prices and as a result of glut in food production that would have a deleterious effect on countries like India.

"There is no pressure to scale them (subsidies) or withdraw them. Only domestic economic factors will influence them," Jaitley said.

The Minister said subsidies being offered to Indian farmers for transport and fertiliser areas were well within norms and "head space and upper limits" still remained to increase them if required.

PTI