Commerce Min Seeks Policy Reforms To Cut Agri Imports .

Expressing concern over large agricultural imports, particularly of edible oils and pulses, the Commerce Ministry today called for immediate aggressive policy reforms to boost domestic output of farm items.

The Commerce Ministry, which today released a draft strategy paper to boost exports, said the increase in domestic output would help increase exports and reduce the country's dependence on imports.

"We have large agricultural imports in pulses, edible oils and other commodities. An aggressive policy reform package with medium-term objectives to increase yields and domestic production needs to be put in place immediately,"the draft paper said.

This would ensure stability in export regime, give a boost to domestic exporters and gradually reduce reliance on imported supplies, it added.

India imported a record 9.24 million tonnes of vegetable oils (comprising edible oil, non-edible oil and vanaspati) worth Rs 38,000 crore during 2009-10 oil year (November- October).

The country had imported about 3.5 million tonnes of pulses in 2009-10 fiscal, even as it is the largest producer in the world.

The pulses'imports are likely to fall next fiscal as the country is all set to produce a record 16.51 million tonnes in 2010-11 crop year (July-June) against 14.66 million tonnes in the previous year. India's annual domestic demand is 18-19 million tonnes.

The country had imported a total of about six million tonnes of sugar in 2009 and 2010 as the production had fallen below the domestic demand.

However, this year the situation has changed and the country is in position to export sugar. Already, the industry has been allowed to meet export obligations of about one million tonnes. Normal exports under Open General License (OGL) are yet to be permitted.

Besides, to reduce fertiliser imports, it recommended rationalisation of fertiliser pricing and production policy to encourage efficiency.

Source : indiareport.com