Credit Package To Boost Farm Exports Planned

Commerce minister B B Ramaiah has said that a special credit package to boost agricultural exports was being planned. The minister expressed confidence that agro-exports would increase by 150 per cent to Rs 50,000 crore by the year 2000.

The National Bank for Agriculture and Rural Development (Nabard) and other funding agencies will come out with a package in the next few weeks, Ramaiah said, while admitting that the recent export deceleration was caused by among other things reduced ceiling for foodgrain exports.

Detailing reasons for recent deceleration in exports (in November and December) Ramaiah said, reduction in the permitted export ceiling for rice and wheat during 1996-97 in view of tight supply conditions in the domestic market, also contributed to the slowdown.

 

On the other hand, he said exports of processed foods in the first seven months of the current fiscal were up 80 per cent in dollar terms, besides a significant growth of 41 per cent and 63 per cent in exports of spices and oil meals.

On the whole agricultural and allied products as a group have recorded an increase of 41 per cent in dollar terms in April-October 1996 even though the aggregate export growth in the whole of 1996-97 would be single digit, he said.

Terming the negative growth in exports in the last two months of the third quarter of 1996-97 as a temporary phase, the minister expressed confidence that exports would stage a turnaround.

Emphasising the need to improve post-harvest technology in the agriculture sector, Ramaiah said agro-products worth as much as Rs 4,000 crore was not being utilised currently because of lack of facilities. He said facilities like ware-housing and processing need to be developed in the country and India is seeking specialisation in these areas from other countries.

In the short-to-medium term strategy for boosting exports, special thrust was being given to encourage exports of agro-products and value-added items such as processed food, the minister said.

The new export and import (Exim) policy, which is being finalised and would run concurrent to the ninth plan, is expected to provide impetus to agriculture growth in tune with the 4.5 per cent growth target envisaged in the approach paper to the ninth plan.