NEW DELHI: Reforms are now on a fast track. As part of its plans to revive the agriculture sector in the country, the newly formed Congress-led UPA government may soon relax export curbs on agri products. Besides, it may also lift the ban on future trading of agri commodities, a senior government official told SundayET.
The official, who spoke on a conditions of anonymity, said ban on export of wheat, non basmati rice, pulses and oil seeds have adversely impacted the growth of the agriculture sector. “The decision to revoke the ban has been taken in the long-term interest of trade,” he said. The official said the commerce and industry ministry has forwarded its suggestions to the Cabinet and is waiting for its approval. The export-friendly policy is expected to revive demands for agricultural products.
As part of the plan, the government is also likely to do away with the system of minimum export price (MEP) on basmati rice exports. “It serves no purpose, rather it is making our basmati exports highly competitive in the world market,” the official said.
According to official figures, the Centre has already procured a record 287.5 lakh tonnes of rice and 229.54 lakh tonnes of wheat so far this procurement season. As a result, the cost of procurement by the Food Corporation of India (FCI) is going up sharply.
When contacted, Joseph Massey, CEO of Multi Commodity Exchange of India (MCX) said it would be an informed decision on part of the government to resume trading in rice, tur and urad. “A Planning Commission committee in its report had highlighted there is no direct correlation between spot prices and futures trading,” he said. Earlier this month, the commodities regulator Forward Markets Commission (FMC) had allowed exchanges to resume futures trade in wheat. The then UPA government had put a stop on forward trading in wheat, rice, and pulses including pigeon peas (tur) and black gram (urad) in 2007 beginning, under pressure from the Left allies who had blamed speculators for pushing commodity prices up.
Source : The Economic Times