About 7% of government spending goes on food subsidies

Jaswant Singh told a conference of businessmen and politicians he knew the subsidies, which guarantee minimum prices, were "painfully inefficient".

But food security was too "vital" to give them up, he said.

And he insisted that it was unfair of rich countries to defend their own subsidies while attacking those of their poorer competitors.

Cancun collapse

India was one of the prime movers in the G21 group of developing countries which blocked industrial nations' wishes to expand the agenda at September's World Trade Organisation talks in Cancun.

The talks fell apart when the two sides could not reach agreement, with the G21 saying developed countries should carry out promised reductions of agricultural support before new issues could be considered.

Jaswant Singh: Food security "is vital"

But Mr Singh said that the talks' failure should not be seen as a disaster, but as a key step taken towards addressing the world's economic imbalances.

India's trade minister, Arun Jaitley, had told him that "had the talks been extended another eight hours, a very reasonable solution could have been found," Mr Singh said.

Debt worries

The high level of subsidy in India agriculture has come in for criticism from economists who say it is hampering attempts to invest in the country's creaking infrastructure.

About 7% of total government spending goes on food and fertiliser subsidies, compared with 14% on defence and 26% on paying debt interest.

The payoffs are also widening a budget deficit that is already worrying some observers, who fear it could eat into economic growth despite predictions of 7% expansion this year.

The year to March is set to produce a deficit of 1.5 trillion rupees ($33bn; �19bn), or 5.6% of total GDP.