The zero duty Export Promotion Capital Goods (EPCG) Scheme should be extended to cover agriculture sector as there is need to adopt the latest product and process technologies to increase productivity, industry body Assocham said today.
Besides being dependent on vagaries of monsoon, agriculture faces serious issues of food security and wastage in the supply chain. Nearly 70% of the population is engaged and dependent on it.
There is need to increase productivity, ensure availability of essential commodities at reasonable prices in domestic market and continue with sustainable exports to remain a credible supplier in international markets, said The Associated Chambers of Commerce and Industry of India (Assocham).
``Processing agriculture produce as per internationally accepted quality and hygiene standards is critical to achieve these objectives,`` said secretary general D.S. Rawat. ``If the benefit of zero duty
EPCG is extended to stakeholders irrespective of their availing status holder incentives, it will help them to leverage their strengths.``
The EPCG scheme of the Foreign Trade Policy allows import of capital goods at zero customs duty subject to an export obligation equivalent to six times of duty saved to be fulfilled in six years. The scheme is valid till March 31.
To encourage Indian manufacturers continuously upgrade their technology and deliver products of global standards, it is recommended that the scheme continues as a permanent feature of the Foreign Trade Policy, said Mr Rawat in communication to the Directorate General of Foreign Trade (DGFT).
Import of capital goods by agriculture sector attracts a duty of 3%. However, the sector is exempt from the obligation of maintaining average export levels.
Source : myiris.com