India has refused to yield to pressure from developed countries to accept easier customs rules without its food subsidy concerns being addressed. India's ambassador to World Trade Organisation, WTO, Anjali Prasad, said risk to food security of millions is unacceptable. She said the adoption of the Trade Facilitation Agreement, TFA, should be postponed till a permanent solution on public stock holding for food security is found. Ms. Prasd was speaking at a specially convened meeting to approve the TFA in Geneva Friday.

New Delhi is demanding that the new agreement should be finalized only after WTO members accept the demand from several developing countries, led by India, to change the rules on government food subsidies. Currently, the government has to cap food subsidy at 10 percent of the value of the production but the value is based on prices prevalent in 1986-88, which have increased many times since then. It will limit the ability of developing countries to maintain public stock holding of food grains, which not just benefits farmers but also helps in combating price fluctuations.

In December at Bali, WTO members had agreed to address India's concerns. But the deal was drafted in a way that the TFA is finalized by July-end, while a final decision on food security and issues of concern to the least developed countries related was deferred for a later date.