Full safeguard of domestic interests in agriculture - Maran

By Our Special Correspondent

NEW DELHI, MARCH 31. In the backdrop of increasing concern being expressed over the impact of globalisation on Indian agriculture, the Export Import Policy 2001-02 has focussed on the positive side of ``internationalisation'' on the country's farmers. Noting that India is the third largest food producer in the world, the Commerce Minister, Mr. Murasoli Maran, has taken the initiative to launch an agricultural export strategy. ``I see a great opportunity for our farmers in the context of the on-going negotiations on agriculture at the WTO,'', he said while announcing the policy.

Mr. Maran observed in the past agricultural exports had only been resorted to whenever there was a surplus in the domestic market. Buyers in the world market, however, sought regular assured supplies. Replying to questions, he recalled previous controversies regarding sustained agricultural exports. ``Onions had become like nuclear bombs at one stage,'' he said. At the same time, he declared, ``We will leave no stone unturned to safeguard the food security and rural employment of our people.''

Mr. Maran felt reorganisation of export efforts on the basis of specific products and geographical areas was needed. As a beginning, the Ministry would focus on areas with a convergence of these two factors and make the zones as ``regional rural motors'' of the Indian export economy. Apples from Himachal Pradesh and Jammu and Kashmir along with alphonso mangoes from the Konkan area would be the first zones and products to be taken up this year. The emphasis would be on end to end development of export specific products.

Mr. Maran said the Cabinet had appointed a group of ministers to evolve an appropriate agricultural export policy. He maintained India needed to position itself to take advantage of the expected liberalisation of agricultural trade. In this context, he said if internationalisation of agriculture took place, it would have several implications.

The terms of trade which had for long been in favour of industry were expected to shift in favour of agriculture. It was estimated by some economists that every one per cent switch would divert about Rs. 8,500 crores additionally in favour of agriculture and about $20 billion would be transferred to the agriculture sector from the non-agriculture sector in the next few years. He said this additional rural purchasing power would create a phenomenal effective demand.

On fears that domestic agriculture would become vulnerable after lifting of QRs, he clarified that the only commitments made by India under the Agreement on Agriculture were to bind agricultural tariffs at 100 per cent for primary agricultural products, 150 per cent for processed foods and 300 per cent for edible oils. He also sought to put at rest doubts regarding the country's ability to follow its own agricultural policy and various domestic support programmes for Indian farmers.

The agreement did not require India to reduce existing subsidies for research, pest and disease control, marketing and promotion services and various infrastructural support services, he said.

``It does not also in any way affect our existing PDS. India has also not taken any obligation for providing minimum market access opportunities to other trading partners,'' he said.

Evidently reacting to the sustained criticism about the impact of WTO agreements on the farm sector, Mr. Maran stressed that the negotiating proposals for further liberalisation of the Agreement on Agriculture ensured full safeguard of Indian interests.

These negotiations, he pointed out, would continue for a few years in Geneva. As these were a time-consuming process, he said the consulting process with State governments and political parties would be continued with a special cell being created in the Commerce Ministry to liaise with State governments.

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Section  : Business
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