Import balance

Ajay Vir Jakhar

An agriculture export policy is important to double the farmers' income. But, the objective is incomplete in the absence of an agriculture import policy. The farmers' income is impacted by import safeguards. Framing of an agriculture export policy, without giving equal importance to import implications, could be counterproductive.

The other issue is related to jurisdiction. Agriculture is a 'state subject' and 'trade and commerce' is in the Union list. Often, New Delhi signs bilateral or multilateral trade treaties without consulting states. This eventually leads to the squeezing of farmers' interests while traders and importers gain. 

The focus of the export policy is on no export restrictions on processed food while it contemplates some kind of restrictions on agriculture produce. This does not gel with the policy's larger objective of doubling of farmers' income. Several crops such as wheat, potatoes and rice (other than Basmati) are exported unprocessed. These are among the main crops of Punjab. Exports of these crops would continue to suffer as the consequence of the proposed policy.

The policy measures should address the gamut of issues raised by the WTO and the FTAs that are affecting or that may affect India's exports. Rather than talking about operational ease of doing exports, the policy is more focused on the single-window clearance. Besides, the Central legislation governing pesticide residues must be restructured to allow states more regulatory powers to reduce misuse and malpractices.

The Centre must fully compensate farmers for growing such crops on which the government imposes export restrictions and prices of those items that fall below the minimum selling price.

— The writer is Chairman, Punjab State Farmers' Commission

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 AEP-2018

Objectives 

• Double agri exports to $60 billion by 2022
• Figure in the top 10 exporting countries
• Boost high value exports, including perishables
• Promote organic, ethnic, non-traditional items
• Institutional mechanism to gain market access 

Current scenario

• World trade: $1.37 trillion (India's share about 2%)
• India's exports: $36 billion (Mar 2013), $31 billion (Mar 2017)
• Production:   $101 billion (2000),   $367 billion (2014)
• Export basket: $5.8 billion (marine products), $4 billion (meat), $6 billion (rice)

Proposed clusters for export promotion

Product State Districts

Apple J&K Srinagar, Budgam, Pulwama

HP Kinnaur, Chamba

Orange Maharashtra Nagpur

Punjab Abohar, Fazilka

Potato UP Agra, Farukkabad

Punjab Jalandhar, Hoshiarpur, Kapurthala, Nawanshahr