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PHDCCI suggests scheme for agri-sector reforms 

 
New Delhi, March 18: PHDCCI has suggested a three-pronged strategy focusing on market access, domestic agricultural marketing support and export competition to access the global agriculture market and to protect farmers from unfavourable terms of trade.

There is strong case for speeding up market access for domestic agriculture products in the developed countries, a PHDCCI statement said, adding that for this, the government should negotiate for various remedial measures at the WTO.

Tariff rates on certain items in India were well below the bound rates specified by WTO. Hence, the government should explore the possibility to raise tariffs up to the bound rates on items such as wheat, it said.

Similarly, tariffs on imports of dairy products, edible oils etc should be raised to levels which protect domestic industry from unfair competition from abroad, it said.

There is need to negotiate for commodities bound at zero tariff like rice, skimmed milk powder, sorghum, maize etc in earlier rounds of Gatt to raise it to 50 per cent as with other agricultural commodities, the chamber said.

Tariff barriers should be raised by imposing a hike in import duty and protecting our products from dumping by the foreign supplier, it said.

PHDCCI said India should negotiate for a commitment to not only reduce domestic support in total agricultural marketing support but also to reduce product specific support separately as well as non-product specific support by the developed nations.

It further said deletion of certain clauses of the green box dealing with direct payments to producers under environment programme, coupled with income support to farmers, government participation in income insurance programmes and payments to farmers for relief from natural disasters be sought.

There was a particular need to design domestic agriculture policies which protect the country's interest in matters relating to food security and concerns for small and marginal farmers who constitute the majority of the country's agricultural producers, PHDCCI stressed.

Agricultural export in India was not a subject to any subsidy except the general income tax exemption given on export earnings including agriculture, it said adding hence, India should similarly argue for complete dismantling of export subsidy among developed countries in the area of agriculture.

(PTI)

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