UPSC Prelims 2018 · CSAT (Paper 2) · Q53

Comprehension

Medium · Crucial message

WTO rules cap the level of trade-distorting agricultural subsidies a member country may provide, calculated against a reference price fixed decades ago. India's public distribution system, which procures foodgrain at a government-set minimum support price to run a large subsidised food security programme, has repeatedly been flagged as at risk of breaching this cap, even though the programme is intended purely for domestic food security rather than export competitiveness.

What is the most crucial message conveyed by the above passage?