A global trade deal is finally in sight with the US and the European Union showing signs of accepting India's demand for providing flexibility to developing countries in fixing minimum support price for farm products.
In return, India will sign the stalled international treaty on easier customs rules once the agreement on the contentious food security issue is reached at the World Trade Organization (WTO).
India, US and EU are close to some understanding, and based on this they will work for a final solution at the WTO.
There are indications that the developed countries will agree not to challenge any breach in food subsidy caps till the calculation formula is reworked.
Based on current rules, several developing countries are close to breaching the cap on 10% value of production and face the threat of punitive action at WTO.
India has argued that the calculation is flawed as it is based on outdated prices and has demanded that formula be reworked.
At the Bali ministerial meeting WTO members had agreed to address India's concerns over a four year period during which no disputes would be raised at the multilateral body even if the subsidy cap was breached.
Despite being blamed for “blocking“ a global trade deal, India has stuck to its stand.
But in recent weeks, officials have indicated that India is willing to settle for a clause that extends the four year peace clause to perpetuity-something that is learnt to have been discussed during a meeting between Prime Minister Narendra Modi and US President Barack Obama.
The reports of a settlement at WTO come two days after Modi met ministers and top commerce department officials on Monday .
Sources said Jaitley had taken up the issue and argued India's stand with US secretary of state John Kerry, when he had visited New Delhi in late July.