Exim Policy Relief For Farm, Marine Products Proposed

The commerce ministry proposes to introduce a major package for exporters of agricultural and marine products in the forthcoming Export and Import (Exim) policy for April 1997-2002. The incentives are expected to be mentioned in a fresh chapter, which will be incorporated in the new policy.

The current Exim policy does not have a chapter on agricultural products. In fact, the diamonds, gems and jewellery sector is the only one which has a chapter exclusively devoted to it in the policy document.

The decision, which was taken at a recent top-level meeting in the ministry, emphasises the emergence of agricultural and marine exports as a major constituent of the countrys total exports. Exports of agricultural and allied products rose by 41.25 per cent from $1.79 billion in April-October 1995 to $2.53 billion in April-October 1996, which was far higher than the overall exports growth of just 6 per cent in the same period. Exports of marine products also outstripped overall export growth, rising by approximately 13 per cent from $545 million to $616 million.

 

The commerce ministry also plans to take up the issue of granting industry status to cash crops with the agriculture ministry. It is being argued that the government should grant industry status to cash crops so that all the attendant benefits could be extended to rubber, pepper, cardamom and other items.

The commerce ministry has also proposed to relax restrictions on the import of inputs, consumables, and processing equipment. Industry has been asking the government to permit duty-free import of refrigeration units and spares for transportation vehicles by 100 per cent export-oriented units in the marine sector.

The ministry is pushing for exemption or reduction of the cess on the export of spices from the current 2 per cent ad valorem level, since exports of raw agricultural commodities attract a cess of only 0.05 per cent. A cut in the duty of cold storage equipment has also been sought in the proposals for this years budget.

The ministry has also been debating the feasibility of fixing a certain percentage of the total output of a product as the exportable limit. For instance, demarcating 2 per cent of the total rice or wheat output for the year for exports. A decision on this is expected later.