ABSTRACT
Developing countries are facing problems in implementing food security policies due to provisions given under the Agreement on Agriculture (AoA). G-33 argued that the 1986-88 base periods has eroded their ability to use food stockholding for food security, and high global prices require higher administered prices that can lead to breaching World Trade Organisation (WTO) commitment. The domestic support or aggregate measurement of support (AMS) is the annual level of support in monetary terms extended to the agricultural sector. If the administered price exceeds the external reference price (ERP), then the difference is accounted for in AMS. The expenditure related to stockholding and distribution comes under Green Box support. However, footnote 5 of AoA, which deals with public stockholding, links expenditure related to stockholding to Amber Box support. Expenditure related to public stockholding and distribution of food grains by Food Corporation of India (FCI) under a targeted public distribution system (TPD) is a part of Green Box support.
