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Maran announces transport assistance to farm exports

EXIM POLICY

In a major thrust to farm exports, the new Exim Policy on Sunday announced transport assistance for export of a wide range of items like surplus wheat and rice as also fruits and vegetables, besides dismantling a variety of restrictions.

The five-year Policy, unveiled by Commerce Minister Murasoli Maran, provides transport assistance for export of fresh and processed fruits, vegetables, floriculture, poultry, dairy products and products of wheat and rice.

"This will also lead to diversification of agriculture activity," Maran said releasing the Policy for 2002-07.

He further said, "it is also proposed to work out suitable transport assistance for export of accumulated stocks of rice and wheat from Food Corporation of India to facilitate their liquidation."

The new policy also removed export restrictions like registration and packaging requirement on butter, wheat and wheat products, coarse grains, groundnut oil and cashew exports to Russia under Rupee Debt Repayment Scheme.

The minister said that the central government would in consultation with the state governments, catalyse the development of necessary infrastructure, flow of credit and other facilities for promoting agro-products.

Indian farmers would get enhanced international market access through 20 Agri Export Zones sanctioned so far, which would also transform select rural regions as regional rural motors of export economy by promoting export of agro products and agro-based processed products, he said.

Describing promotion of agricultural exports as important for creating conditions to provide remunerative prices to farm products, Maran said India would make a mark in international trade with a "farm-to-port approach as reflected in the Agri Export Zones scheme and in the proposed Agri-Export Policy".

Observing that the actions initiated in earlier years have begun to bear fruits, he said quantitative and packaging restrictions on wheat and its products, butter, pulses, grain, and flour of barley, maize, bajra, ragi and jowar have already been removed on March 5, this year.

While removing restrictions on export of all cultivated varieties of seed, except jute and onion, the policy provides for three per cent Duty Entitlement Pass Book rate for primary and processed foods exported in retail packaging of one kilogram or less.

On the breakthrough achieved in foodgrains exports, he said as against the anticipated export of 8 million tonnes of foodgrains during the year, the country has already exported about 7.3 million tonnes.

India is now exporting foodgrains to about 16 countries, he said, adding that according to the International Grain Council, "we are at the seventh position amongst the wheat exporting countries".

It is estimated that every one per cent switch in the terms of trade in favour of agriculture would result in diversion of about Rs 85 billion annually in favour of agriculture from the non-agriculture sector, he said.

"This additional rural purchasing power will create a phenomenal effective demand," he said.

ALSO READ:
The Exim Policy 2002-2003
The Rediff Budget Special
Money

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