The food trade has become one of the major components of Indian global trade and commerce in recent times. In fact, the Indian share of food trade has increased to 2.2 per cent of the global food trade in last three years. According to APEDA (Agricultural and Processed Food Products Export Development Authority), the Indian food processing industry is primarily export-oriented and India's exports of processed food stood at Rs 41,309.04 crore in 2012-13.
Also with India’s dominance at the WTO (World Trade Organisation) Ministerial Meeting proceedings in Bali, the focus has shifted to the Indian ministry of trade and commerce (The interview was conducted before the conclusion of the meeting).
How the government is facilitating the Indian processing sector?
For the first time MSP (Minimum Support Price) for coarse grain is given by our government. Regarding the other fruits and horticulture production, the ministry of agriculture is funding every aspect of developing, improving, and enhancing the technology leading to export after satisfying the domestic need. And the incentives are in terms of manning and materials in addition to technology, knowledge transfer. There is 100 per cent FDI in processing industry and we are encouraging by 60% subsidy for creating cluster in food processing for purpose of export. The modified scheme of industrial development allows the participation of the manufacturers with 15 per cent investment supported by 25 per cent by state government and rest by Government of India. And at many of the places the clusters are already established. It ranges from Rs 10 crore to Rs 100 crore by subsidy part for developing agriculture produce, spices, coconut, coir, tea, coffee, and such other food related processing units. The policies and the Five Year Plans were made on this basis to improve the GDP through development of the agriculture and allied sectors.
There is an apprehension that Indian farm subsidy could be trimmed with new round of negotiations at Bali Ministerial Meet. What is the ministry’s position in this regard?
GoI has a consistent stand, including all parties in opposition that at any cost India will not compromise on or negotiate against the interest of Indian farmers.
Cabinet minister Anand Sharma has made it very clear on record that we are not going to compromise on our interests but will protect the interest of the country. There is no question of any other country dominating on India.
In a recent newspaper report about meeting between FAO and Indian authorities, the former has charged that Indian Food Security Bill could prove detrimental for global food trade and result in price distortion and lead to inflation. What is your ministry’s take on the issue?
It’s a wrong impression. Any manufacturer does business on two conditions, one is there should be a definite market and two, definite minimum price for that product. Already India has allowed 100% FDI route for agriculture. The whole world is open for doing agriculture business in India. There is no barrier for anything. The Indian agriculturist has now well graduated to meet the situation, as highly skilled human resources, and capability of absorbing new technology concerning the best practices in agriculture management are strength of Indian agriculture. So India can meet its demand under the Food Security Act and outside world.
What has been the progress so far in Foreign Direct Investment-FDI? What is the way forward for the FDI retail sector given the opposition it is facing in the country?
As I told the apprehension of FAO is no more relevant and more international players are interested in investment in India knowing well that domestic and external demand can be met by their investment. The policy of FDI in retail is basically for state to implement. Already 13 state governments have come forward and started negotiating with companies.
The opposition to FDI is by people who are against development of agriculture and small farmers. It would give a fillip to small agriculture players, as they would get assured market price. Because the present institutional financial support is imposing more interest on agriculture but FDI would help in lowering of interest rate and naturally agriculture becomes more profitable.
What is the progress so far in Free Trade Agreement with EU? How the government is going to safeguard the interest of Indian traders particularly the dairy sector, which has expressed apprehensions regarding adverse impact on the domestic dairy industry?
We want to have it on textile, agricultural produce and other areas. But Europeans do not fully understand the best structure of IP regime available in India. If they are convinced on that aspect, the farmer lobby would also cooperate with EU to come for an agreement of win-win situation for both sides.
For all other concerns, we will be careful in dealing with such issues. The priority will be protecting the national interest. In no way we’ll compromise on that issue but at the same time we have to find out new horizons for Indian dairy industry in domestic and international fields. The world is open, the Indian dairy industry is open for 158 countries therefore we need not worry for some countries which are in the EU. We’ve confidence that dairy industry would graduate to meet the challenges.
FnBNews.com, Monday, December 30, 2013
No comments:
Post a Comment