Take steps to increase agri exports: Parliament panel to govt

With the Covid-19 pandemic adversely impacting the economy, the Parliamentary Standing Committee on Commerce has asked the government to identify commodities and products where the country has a "comparative advantage" and prioritise target countries for export.

The panel headed by senior YSR Congress MP V Vijayasai Reddy also recommended allowing Foreign Direct Investment (FDI) in a regulated manner in the tobacco sector and establishing export-only tobacco farms to boost outward shipments.

In the report on the 'Export of Agricultural and Marine Products, Plantation Crops, Turmeric and Coir' submitted to Rajya Sabha Chairman M Venkaiah Naidu on Wednesday, the panel said measures for promoting agricultural and plantation sectors assume more significance in the context of the pandemic.

The adverse impact of the pandemic on the export front would require concerted measures by the government and other stakeholders.

The Department of Commerce should identify commodities and products where India has a comparative advantage and prioritise target countries for their export and put in place the WTO-compatible export subsidies for the predictable and consistent regime for exporters.

It also asked the government to play a proactive role in international trade and economic fora in strengthening multilateralism and ensuring fair world trade governance in the post-Covid-19 phase.

The panel noted that the share of export of agricultural commodities as compared to their production was low. Only 0.2% of wheat, 1.2% of pulses and 1.3% of fruits produced in India are exported, it said.

The government should extend the necessary support and incentives to the growers for scientific production, which would tremendously help in boosting quality production thereby pushing up export to new heights. Proactive efforts should be undertaken towards the market exploration of new emerging trade destinations of Egypt, Mexico, Malaysia, Indonesia and the Philippines for Indian rice export, it added.

On tobacco, the panel suggested that 100% FDI in the tobacco sector should be allowed with a condition that tobacco produced using investment from abroad would be marketed through auction platforms.

"Also, FDI may be permitted in cigarette manufacturing wherein the value addition of such products is done only in SEZs for export purpose with no domestic sale," it said adding the feasibility of having 'export only' tobacco farms should be explored for promoting the cultivation of tobacco specifically for export purposes.

India is the third-largest producer and exporter of tobacco in the world, contributing Rs 6,001.02 crore (2018-19) in terms of foreign exchange to the exchequer.

Referring to the vast potential in harvesting marine resources owing to India’s long coastline, the panel recommended that the Marine Products Export Development Authority (MPEDA) undertake measures for value-addition and quality standards and establishing testing laboratories near marine processing centres and an e-auction platform.

Steps should also be taken to modernise dilapidated fishing harbours, upgradation of post-harvest infrastructure, devising specific schemes for Tuna fish production and its export given its huge potential, appropriate incentives to the marine exporters.