Subsidy on agri exports proposed

Liberalisation benefits should percolate to agri sector: DGFT chief

The Director General of Foreign Trade (DGFT), Government of India, has proposed introduction of subsidy schemes for agriculture exports. Agricultural exports can now be done directly and not necessarily through the Food Corporation of India (FCI).

"The benefits from liberalisation should also percolate to the agricultural sector. We propose to introduce subsidy schemes for agricultural exports," L Mansingh, Director General of Foreign Trade (DGFT), Government of India, said at an interactive session with exporters organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) in Ahmedabad on Thursday.

"Under the World Trade Organisation (WTO) regime, companies will flourish only on the basis of efficiency and competitiveness. The international trade policy is formulated and amended keeping in view the global scenario and the competitiveness in various products. There are many factors which determine the growth of exports because there are many agencies involved," said Mansingh.

"Currently imports are greater than exports and with rupee becoming stronger than the dollar, it is beneficial for our exports," added Mansingh.

Regarding the DEPB scheme, he mentioned that barring the steel industry, the reduction has been done directly proportional to the duty reduction. While quoting Finance Minister's statement, he said, "The whole country should be internationally competitive, which implies that the production system adopted should be comparable to special economic zones (SEZ's)."

T N C Rajagopalan, consultant, Exim Policy said: "Though there have been changes in the exim policy to make it compatible with WTO regime, much needs to be done, specially in the areas of de-licensing and the DEPB scheme should be transacted through the bank. Delay in issuing export licence needs to be urgently attended to enhance and boost export growth."

Sunil Parekh, advisor, Crisil, said: "To boost exports, we need reforms in the infrastructure sector, which are required in the area of ports and roads and also labour reforms. The key to accelerate the development is sharp focus, leadership and well formulated strategy."

The meeting attended by over 100 participants was very interactive. There were various issues which were raised during the meeting, which Mansingh has assured would be attended to. Earlier, Amit Gadodaia, chairman FICCI, Gujarat State Council, while welcoming Mansingh said, "In the era0 of global competition, competitiveness of the industry is the prime requirement but it has to be supplemented and complimented by policy initiatives of the government."