Date:09/08/2005 URL: http://www.thehindubusinessline.com/2005/08/09/stories/2005080901291900.htm

Back `Tune agri policy to gain from WTO'

Our Bureau

Hyderabad , Aug. 8

DOMESTIC agriculture policies should be structured in such a way that they derive maximum benefits within the framework of the World Trade Organisation (WTO) agreement in the sector, Dr Suresh Babu, Senior Advisor & Programme Leader at the International Food Policy Research Institute (IFPRI), Washington has said.

The Policy should ensure that the farmers get the right price and access to the correct markets. There was a need for countries in the South Asian region to rethink option on the WTO agreement on these lines, he suggested at a seminar on "WTO Implications for Agriculture Sector in AP," organised by the Dr M.C.H.R.D. Institute.

Rethink in the sense that the countries should clearly assess what they can give and what they can take, Dr Babu said. In the Indian context, he said there was a need to reform the price policy to ensure that you don't end up by giving a high Minimum Support Price (MSP), and build up huge stocks.

The IFPRI Advisor also felt countries like India, where a majority of agriculture is subsistence, should be careful on import of agri commodities. Imports in this sector could mean importing unemployment.

Similarly, while allowing multinationals and big traders into the sector, a careful study needed to be done.

Dr Babu said a clear understanding should be there on whether it would help farmers or throw people out of jobs. In Punjab for example the entry of MNCs into cultivation of tomato has thrown up mixed results.

Earlier, inaugurating the seminar, the Agriculture Minister of AP, Mr N. Raghuveera Reddy said during the past 10 years, the State was lacking in a favourable Agriculture Policy, which had resulted in negative growth. His Government was making efforts to rectify the situation by evolving a farmer-friendly and rural development oriented policy initiative.

The State was also focussing on translating the benefits of globalisation and WTO, which were impacting negatively now, to rural poor through appropriate policy changes.

WTO offers both challenges and problems, he added.