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Farm Subsidies (Types (Direct farm Subsidies (The kinds of Subsidies in…

- - - - All Subsidies which are supposed to distort production and trade fall into the amber box i.e. Agricultural Subsidies except those which fall into the blue and green boxes
      - MSP by GoI falls under this box
      - Only 5% and 10% for developed and developing countries are allowed, of their total value of agricultural outputs per annum accordingly
    - - This is the amber box with conditions. The conditions are designed to reduce distortions
      - Any Subsidies that would normally be in the amber box if it requires farmers to go for a certain production level
      - At present there are no limits on spending on Subsidies in the blue box
    - - Agricultural Subsidies which cause minimal or no distortions to trade are put under the green box
      - They must not involved price support
    - - It allows the developing countries for some Subsidies to the agriculture sector under certain conditions
      - These conditions revolves around human development issues such as poverty, minimum social welfare, health support etc especially for the segment of population living under BPL
      - Developing countries can forward such Subsidies to the extent of less than 5% of their agricultural output