Kerala urges Centre not to sign trade pact with ASEAN.

The Chief Minister, Mr V.S. Achuthanandan, said in a letter to the Prime Minister, Dr Manmohan Singh, the trade agreement in its present form had many provisions that went against the interests of the agricultural economy of the State.

The decision to sign the agreement with ASEAN has come at a time when the market for produces such as pepper and coconut oil is already under severe strain in the wake of import liberalisations.

The agreement will pave the way for liberal import of commodities such as rubber, tea, pepper and edible oils. Kerala has had a prominent position in the production of these commodities and their import would drive down the prices, leading to huge erosion in the income of the farmers, the letter said.