Agreement between India and USA on public stock piling of food is a very significant development and it would pave the way for implementation of India's stand on food security and Trade Facilitation Agreement (TFA) at the WTO forum, said Sharad Jaipuria, President, PHD Chamber of Commerce and Industry.

"We believe, members of the WTO will also take it forward with enhanced contribution by the WTO which should reflect its commitment to trade development at the global level", said Jaipuria.

"The agreement between the two countries is an important step towards restoring the lost momentum. It would enable to restoration of confidence in the WTO negotiations going forward," he said.

India has been under pressure from several countries, particularly the US, to drop its objections to the Trade Facilitation Agreement.

India's objections are on the WTO limits on agriculture subsidies at 10 percent of the total value of foodgrain production, and on stockpiling foodgrain. Complying with the country's Food Security Act passed last year that guarantees subsidised foodgrains to around 70 percent of the population could result in breaching these limits leading to penalties for India.

At Bali, the ministers also agreed, by what is called the "peace clause", that till 2017 no country can move the dispute settlement body of the WTO against another member if its government was found to be breaching the level of subsidy freeze that was permitted.

Commenting on the same, Ajay S Shriram, President, CII welcomed the statement of Ms. Nirmala Sitharaman, Minister of State for Commerce & Industry (IC) on the positive developments which would hopefully end the impasse at the WTO.

"We are indeed happy that India and the US had successfully resolved the issues relating to public stockholding for food security purposes," Shriram stated.

According to Shriram, "Indian industry looks forward to closure on this issue at the WTO General Council meeting next month, thereby allowing the Bali package to move forward."