Thailand Recalls WTO Envoy After Row with India Over Rice Program

Thailand has replaced its ambassador to the World Trade Organization (WTO), Pimchanok Vonkorpon Pitfield, following strong objections raised by India over her remarks on India's rice procurement program.

A diplomatic friction arose following Pitfield's remarks during a consultation meeting on 28 February, 2024, where she accused India of utilizing its rice procurement program, particularly the Minimum Support Price (MSP) regime for capturing the international export market. India promptly expressed its strong displeasure over these comments, leading to a formal protest lodged with the Thai government.

Thailand, a major rice exporter itself, is also part of a larger movement advocating for free trade in agricultural products. This 19-nation group, known as the Cairns Group, includes Thailand alongside other agricultural powerhouses like Argentina, Brazil, Australia, and Indonesia. Their shared goal is to eliminate restrictions and promote the smooth flow of agricultural commodities across international borders.

Contrary to Pitfield's assertions, Indian officials clarified that only about 40 per cent of paddy produce is procured by the government under the MSP scheme, primarily aimed at fulfilling domestic food security commitments. The remaining portion is subjected to market dynamics, with a significant proportion exported at prevailing market prices.

India's stance on rice exports has garnered international attention, particularly as it held the title of the world's largest rice exporter from 2018 to 2022. However, amidst geopolitical uncertainties and climatic concerns, India took proactive measures in 2023 by banning the export of broken and non-basmati white rice to stabilize domestic prices and ensure adequate market availability.

The ban on certain categories of rice exports and latest WTO tussle reflects complexities inherent in agricultural trade policies, especially in the context of food security and market stability.