Agri-exporters upset

Agricultural product exporters said they were disappointed the government had not announced any transport subsidy in the trade policy for 2004 -2009 announced today.

Though the policy has framed with the aim of doubling the country's share in global trade, this major issue remained unaddressed, S K Jain, chairman of the Federation of Indian Export organisation (FIEO), said. Transport costs were hurting exporters of agriculture products.

Prior to August 2003, export of agri goods like rice, wheat, maize and tea were supported by a subsidy routed through Food Corporation of India (FCI). At present all such 'disguised' subsidies had been withdrawn.

The burden was around Rs 1000-Rs 1200 per metric tonne. This made export of low value goods uncompetitive.

A subsidy at least of around Rs 900 per metric tonne was necessary to be competitive in the world market, "" or else Indian agricultural goods out would be wiped out in the global market. The support does not contradict World Trade Organisation's norms," claimed Jain.

Exporters said they hoped the government would come up with a transport subsidy scheme, added Jain.