31st March, 2003
Exim Policy 2002 - 2007 (As amended upto 31/3/2003)


FARMERS MUST BENEFIT FROM PROCESS OF GLOBALISATION, SAYS JAITLEY

MAJOR INITIATIVES TO BOOST AGRO EXPORTS


Shri Arun Jaitley, Union Minister of Commerce & Industry and Law & Justice has said that unless it is ensured that the rural sector and the Indian farmers receive visible benefits from economic reforms and the process of globalisation, it may not be possible to accelerate the economic growth. Announcing major policy initiatives to boost agro and allied exports from India as part of the EXIM Policy 2003-04, Shri Jaitley said: "You would recollect that we had introduced the Scheme of Agro Export Processing Zones (AEZ) in the 2002-2007 Policy for end to end development of export of specific products from a geographically contiguous area. We are gratified that there has been an enthusiastic response to the scheme from the States and the rural community. As many as 45 AEZs have been notified so far in different parts of the country. We want to further accelerate this process. Agriculture and allied products is our core competence. Not only is it diversified with a large variety of crops, fruits, vegetables and flourishing dairy sector, but we are among the world leaders in output of many products.

As all of you are aware, one of the limiting factors in the increase in agricultural productivity and quality and for protecting it from the vagaries of monsoon is the lack of or inadequate investment in this sector for bringing to the farmer the latest technology and knowledge and for setting up critical infrastructure in the form of water harvesting and soil management, better quality of seeds and optimal use of inputs, adoption of scientific pre and post harvest treatment and storage and establishment of linkage with international marketing. In spite of the enthusiasm shown by many of the State Governments, availability of investible resources in creation of such critical infrastructure even in the AEZs has been a constraint. In view of this, we propose to also facilitate and promote association of corporates with proven credentials in the implementation of AEZs in order to give a boost to productivity and quality of specified agro products leading to accelerated exports. For this purpose, we are having consultations with Ministry of Finance who are receptive to the idea, to provide appropriate incentives to enable investments by these corporates to infrastructure, agricultural extension, processing, packing, storage, R&D and other facilities relating to exports in the approved AEZs.

Another major initiative to boost agri and allied products exports will be the modification of norms for fixing DEPB rates for export of agriculture, horticulture and allied products. In fixing DEPB rates for such products, we shall take into account inputs such as fertilisers, pesticides, certified seeds etc. used by the farmers prior to processing of the products for exports. This would also ensure that the Indian farmer uses the required inputs in a scientific manner to boost productivity and quality. To begin with, this facility will be extended only to selected products on the basis of the recommendation of an Inter-Ministerial Committee".

 
 
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