Speciality Agro Products Ltd. requires clarity about the special provisions about agricultural subsidies so that the company is not subject to countervailing measures. As Company Secretary of the said company, advise the

The term subsidy means money granted by the State or a Public Body to keep the prices of commodities under control. Subsidy may take the form of direct or indirect government grants on production or exportation of goods including any special subsidy on transportation of any product. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public. If a domestic industry, like farming, is struggling to survive in a highly competitive international industry with low prices, a government may give cash subsidies to farms so that they can sell at the low market price but still achieve financial gain. Article 13 of the Agreement on Subsidies and Countervailing measures (SCM Agreement) provides for special rules regarding subsidies for agricultural products. Domestic supports which are in full conformity with the Agriculture Agreement are not actionable multilaterally, although they also may be subject to countervailing duties. Finally, domestic supports within the "green box" of the Agriculture Agreement are not actionable multilaterally nor are they subject to countervailing measures.