Frequent amendment in trade policies hurting India's image: CII.

NEW DELHI: Frequent amendments in the country's trade policies and export ban on agricultural commodities are hurting India's credibility as a dependable exporter, industry body CII said today.

"Frequent amendments in Indian trade policies have corroded the trust of foreign buyers while the Indian exporter is made to pay for delays. Be it pulses, sugar or cotton, exporters have no respite," CII said in a statement.

The industry chamber said that consistent trade policies will help in creating a reliable outlook. The returns would be positive for brand India internationally.

"Recent ban on export of various agricultural commodities such as cotton, pulses, sugar, casein have eroded the credibility of India as a dependable exporter," CII National Task force on Agri Marketing Chairman Gokul Patnaik said.

Foreign importers are asking the question, "Is India only a fair weather friend?" Indian exporters are being dubbed unreliable," Patnaik, who is the former Chairman of agri-export promotion body APEDA, said.

On the issue of import of pulses, CII National Council on Agriculture Chairman Rakesh Bharti Mittal said that there is a need to develop a long-term strategy for timely sourcing and distribution of pulses.

On sugar exports, CII National Committee on Sugar Chairman Ajay Shriram said that due to inconsistent trade policy on sugar and late decision making, the industry has suffered severely either by paying higher prices for imports or getting lower prices for its exports.

"Sugar industry needs a stable and proactive trade policy which will maintain domestic prices, stocks, reducing excessive fluctuations of sugar market and paying timely and remunerative sugarcane price to farmers," he added.

CII said that to strengthen 'Brand India', the trade policy needs to shift from gate keeping on export policies towards more consistent, reliable and transparent standards for export of agricultural commodities.

"It will be in national interest if Government of India takes a long term view and export-import is not regulated by 'switch on switch off' policy," Patnaik said.

Tariff control would be a more effective and acceptable way of dealing with temporary shortages rather than quantitative restrictions, he added.

Source : economictimes.indiatimes.com