US cotton industry concerned over Indian subsidy

The US cotton industry has expressed its concern over subsidies being provided by the Indian government to its cotton growing farmers, alleging it is in violation of WTO norms. Testifying before the US International Trade Commission hearing on "India: Effects of Tariffs and Non-Tariff Measures on US Agricultural Experts", the National Cotton Council -- the central organisation of the US cotton industry -- has sought the administration's help in this regard. "The lack of transparency in the operation and scope of India's subsidy programme is a major impediment to trade. Despite India's membership in the WTO, it has repeatedly failed to notify its support levels to WTO," Gary Adams, of the National Cotton Council, said. The special hearing was convened by the US International Trade Commission at the direction of the US Senate Committee on Finance in this regard. Adams urged the US government that it should continue to press India to make these submissions. "The export subsidy (to cotton farmers) programme will support India's internal prices while artificially increasing its competitiveness in world market," he argued.