After burning the midnight oil and tough negotiations over the past four days in the face of India's unrelenting stand on the food security issue, the 159-member World Trade Organization (WTO) reached a historic agreement that will boost global trade by $1 trillion.
The deal allows nations such as India to fix a Minimum Support Price (MSP) for farm produce and to sell staple grains to the poor at subsidised rates. It also permits countries to store foodgrains to meet contingency requirements.
"A great day for India, I am more than happy...India has clinched WTO deal for the farmers and poor of the world," Commerce and Industry Minister Anand Sharma told PTI after the final round of negotiations.
The draft agreement, which will protect the right to food and allow India to go ahead with its $20 billion food security scheme, is expected to be adopted by the plenary later in the day.
"It's a victory for Indian farmers and farmers of the developing world. It is also recognition of the right of developing nations for public stock-holding of food grains to ensure food security for their citizens," Mr Sharma said.
The agreement will come as booster for the WTO, which had failed to make headway with regard to the Doha round of trade talks, pending since 2001. Sources said the resolute fight put up by India helped in clinching the deal in favour of the poor and subsistence farmers of the developing world.
According to the proposal, all schemes providing support in relation to procurement for public stock-holding programmes for staple food crops will be protected from WTO litigation.
"All traditional staple food crops, without any numerical limit, will be covered under the decision...this decision provides legal certainty and also commits WTO members to work towards updating the rules under Agreement on Agriculture (AoA)," sources said.
The deal was clinched after WTO Director General Roberto Azevedo called a crucial meeting of key players, which continued till early morning. It was attended by Mr Sharma, US Trade Representative (USTR) Michael Froman and Indonesian Trade Minister Gita Wirjawan.
Developed countries such as the US and the EU wanted India to accept a peace clause, which offers four years of immunity from penalties imposed for breaching the farm subsidy cap of 10 per cent under the AoA. Host Indonesia shared the same view.
India and other developing nations, on the other hand, wanted the peace clause until a permanent solution is found on the matter for smooth implementation of the food security programme.