India, Russia discuss trade

By Our Special Correspondent

NEW DELHI, APRIL 28. India has raised many trade issues with the Russian Federation, including the installation of a suitable mechanism for providing institutional credit to Russian importers of Indian tobacco.

The other issues that figured during a meeting between the Commerce and Industry Minister, Mr. Murasoli Maran, and the visiting Russian Minister for Trade, Mr. M. F. Fradkov, here today include exports of Indian tea, duty differential on packaged and bulk tea, a possible shorter transportation route for bilateral trade and possible sale of civilian aircraft and helicopters by Russia to India.

During the meeting, Mr. Maran proposed a mechanism for providing institutional credit to Russian importers of Indian tobacco and the Russian side agreed to that. Details of the mechanism were to be worked out soon. Mr. Maran also brought up the twin issue of duty differential on bulk tea and packaged tea in Russia and certification of Indian tea in the Russian market.

Mr. Fradkov said the issue of duty differential was being looked into by an appropriate authority in Russia. On the issue of certification of Indian tea, it was indicated that the Tea Board of India along with its counterpart Russian body would undertake joint certification of Indian tea in Russia and the Russian body would be designated soon.

From the Russian side, a proposal was made for a new trade route through Iran, the Caspian Sea and Astarkhan which would be shorter than the traditional route. Mr. Maran agreed that such a route would be more economical in facilitating trade and felt that the proposal could be followed up.

Mr. Fradkov also mentioned the Russian interest in the sale of civilian aircraft and helicopters to India and expressed concern over anti-dumping investigations in India on some Russian products. The Indian side pointed out that a mechanism had been put in place for holding consultations between the industry of two countries in this regard.

Indo-Russian trade stood at Rs. 5,558 crores in 1998- 99. During the current financial year, data available up to December 1999 showed there was a positive trend with exports from India to Russia increasing by over 45 per cent to. Rs 3,163 crores against Rs. 2,178 crores during the corresponding period of last year while imports from Russia increased by 20 per cent to Rs. 2,081 crores from Rs. 1,731 crores in the same period of the previous year.

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