VISAKHAPATNAM: The Parliamentary Standing Committee on Commerce headed by Rajya Sabha member V Vijayasai Reddy recommended the government to encourage more exports of agricultural products. The committee opined that there is a need to encourage the exports and it has recommended many measures.
The Committee has submitted 154th report on Exports of Agriculture, Marine, Plantation, Coir & Turmeric products to the Chairman of Rajya Sabha M.Venkaiah Naidu on Wednesday in Delhi. Committee found that the share of exports of agricultural commodities as compared to their total production was low. As per the study of the committee, the exports of Wheat is 0.2%, pulses is 1.2% and fruits are 1.3%.
The Committee recommended that the department needed to undertake renewed and vigorous efforts to bring efficiency in supply chain, infrastructure development and higher value-addition for promoting agricultural exports.
It has further said that necessary support and incentives should be extended to the growers for scientific production of commodities that can help in boosting quality production and leads to push up of exports to new heights. Proactive efforts should also be taken for market exploration of new emerging trade destinations of Egypt, Mexico, Malaysia, Indonesia and Philippines for Indian rice export. The committee appreciated the government for launching the Agriculture Export Policy (AEP) to boost up exports.
Committee found a considerable decline in marine exports since 2017-18. It has recommended regulation and administration by the department on over usage of antibiotics and adequate extension services and package of practices to farmers to educate them. Research and development activities should be focused on quality and yield. Huge potential existing in tuna fish should be explored for increase the share in marine export. For this, a scientific scheme in consultation with CIFT should be devised for promoting tuna fish production and also export, the committee opined.
The committee chairman Vijaya Sai Reddy said that India produces about 800 million kgs of various types of tobacco every year. Of which Flue Cured Virginia (FCV) tobacco is around 209 million KG in 2018-19 and AP and Karnataka are the main producing states.
India is the third largest produced and exporter of tobacco in the world contributing Rs. 6001 crore to national exchequer. Inadequate allocation of funds for research is a major obstacle in competing in the world markets.
Promotion of Industry and internal trade, 100% FDI was allowed in the plantation of tea, coffee, rubber and cardamom cultivations, but it was not in the tobacco.
The committee recommended the department to study and analyse the prospect of opening FDI investments at the earliest. It has also suggested that to engage in consultations with the Ministry of Finance to impose a levy of 1% on the sale of cigarettes which may be utilised as a ‘Market Stabilization Fund’ for tobacco.
Vijayasai Reddy said that measures should be taken to prevent further shrinkage of land under tobacco cultivation which could show adverse impact on production and export. Further recommended that the feasibility of having ‘Export Only’ tobacco farms may be implored upon the promoting cultivation of tobacco specifically for export purpose.