CPI-M MP against signing of FTA pact between India, ASEAN

A CPI(M) MP from Kerala today asked the government not to pursue signing of the Free Trade Agreement (FTA) between India and the ASEAN, saying it would adversely affect the interests of cash-crop producing farmers of the state.

Raising the issue during the Zero Hour in Lok Sabha, M B Rajesh said while the government had reduced customs duty on palm oil imports, thereby lowering its prices, it had imposed excise duty on locally-produced coconut oil thus raising its prices.

He also pointed out that there was no duty on olive oil which was largely imported.

While these measures were directly hitting the farmers, the Indo-ASEAN FTA, which covers trade in hundreds of agricultural and other items, would have its adverse impact on the Indian farmers, Rajesh said.

He demanded that the government should withdraw excise duty on coconout oil and not proceed with signing of the FTA.

The issue had come up in the House yesterday when a Congress member had said that the Indo-ASEAN agreement on trade in goods would affect the livelihood of farmers, particularly those engaged in cultivation of rubber, tea, coffee, coconut and marine products.

The agreement is expected to be signed during the India-ASEAN Summit in Thailand in October.