Export Subsidy in Indian Agriculture: An Analysis

Abstract

Analysing the genesis and history of international trade in agricultural goods, one would find that the root cause of distortion of international trade in agriculture has been trade policies of the states. Massive domestic subsidies have been given by the industrialized countries to their agricultural sector over many years. These subsidies, owing to the lack of matching protection and incentive given by the developing and least developed countries (owing to their weak financial positions and other related factors), have led to excessive production and the consequent dumping of the agricultural product of the developed countries in international markets. This paper analyzes the situation of export subsidy in India and the various attributes relates to the same.