India hardens stance at WTO over public stocks of grains

Won't negotiate on any farm issue until WTO finds permanent solution to subsidies problem

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India will not negotiate on any farm issue at the World Trade Organization (WTO) until the body finds a permanent solution to the issue of public stocks of foodgrains, a govnment official said signalling a hardening of position ahead of the world body's next ministerial meeting.

India wants the matter settled as it prepares for the WTO's 13th ministerial meeting in Abu Dhabi from 26-29 February. The 'ministerial' is the highest decision-making forum at the 164member rule-setting body.

The public stocks issue goes to the heart of India's food distribution system. Wealthy nations claim Indian subsidies in the form of minimum support prices for farmers and free food for the poor-breach WTO subsidy thresholds.

New Delhi says these subsidies are necessary in an overwhelmingly agrarian society and a country with a large number of people living in poverty.