The government is likely to refer to a Group of Ministers concerns of Kerala farmers over impact of the India-Asean Free Trade Agreement on plantation sector.
The decision to get the matter vetted by a GoM comes after objections raised by a Cabinet minister who hails from the state, although the market-opening FTA with the 10-nation south Asian trading bloc is believed to have been cleared by the Union Cabinet on Thursday. “The GoM will be set up to address the limited concerns on Kerala. Otherwise, the FTA received positive response in the Cabinet,” a source said.
Defence Minister A K Antony is believed to have raised the issue on the impact of the trade pact with Asean on the farmers, particularly from Kerala growing pepper and rubber.
India would be committed to drastically reduce the import duty on these plantation crops in the next 10 years, as per the agreement which is likely to be signed in October.
While Antony is understood to have opposed the pact, the proposed FTA received support from Commerce Minister Anand Sharma, Road Transport Minister Kamal Nath and External Affairs Minister S M Krishna.