Exim policy a 'surrender' to developed nations: Left

By Our Special Correspondent

NEW DELHI, APRIL 1. The Left parties today hit out at the Exim policy unveiled on Saturday terming it as the Government's ``surrender'' to developed nations within the World Trade Organisation (WTO) and harmful to all sections of society, especially farmers and small producers.

The CPI(M) politburo said in a statement that the policy would spell doom for the domestic producers and farmers and that with the removal of Quantitative Restrictions (QRs) no mechanism was left to protect the basic interests of the agriculture sector.

It stressed that as against the need for a flexible tariff regime, which would automatically adjust tariffs to international price changes and reduce its effects on Indian producers, the policy only asserted how the agri-sector would not be affected adversely.

The policy's ``obsession'' with export of agricultural commodities was not in the economy's interest and the diversion of crop area from foodgrain to agri-exports would be ``disastrous in the long run'' for the food security.

Such exports were not likely to generate adequate foreign exchange for imports of manufactured goods. ``India's objective should be to become a manufactured goods exporter as opposed to a primary commodity exporter,'' the statement said.

The policy ignored the problems which would be faced by the domestic producers and the adverse consequences for rural employment. The lifting of QRs would affect oil seeds, dairy products and poultry among other sectors.

Mockingly, it noted the Commerce Minister's ``concern'' to protect the domestic automobile industry which was currently dominated by multi-nationals. ``No such concern is evident for the capital good industry which is dominated by Indian producers,'' the CPI(M) said adding that imports of second-hand capital goods of up to 10 years age had been made completely free.

The policy's emphasis on special economic zones and now agricultural economic zones to boost export were moves to remove labour protection laws and allowing exploitation of workers.

`Economy will be hit'

The CPI's central secretariat said in a statement that the policy would make the economy slide down the incline plane at accelerated speed and the dismantled QRs would open the floodgates for imports of all kinds of foreign commodities.

While the move might be good for foreign exporters who would find easy and uncontrolled access to Indian markets, it would ``gravely'' jeopardise domestic agriculture and small scale sector.

``For the elite, the fashion-conscious, the affluent, there might be greater consumer choice to meet their tastes. But for the farmer, the artisan, the self-employed, the small entrepreneur, it will spell misery,'' the statement said adding this could not be fobbed off by a reassurance by the Government to set up a `war room' to keep vigil.

``This latest move further demonstrates the NDA government's surrender before the G-7 and OECD countries within the WTO,'' the CPI said.

While echoing similar views, the CPI(ML) demanded that the WTO- propelled integration of Indian agriculture and industry with the global market must be rolled back.

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