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Saturday, February 6, 1999

Kerala wants cash crops in negative list of Indo-Lanka pact 

PRESS TRUST OF INDIA  
Thiruvananthapuram, Feb 5: Kerala will continue to press the Centre to include coconut, rubber, spices and coffee and tea in the 'negative list' of commodities in the Indo-Sri Lankan trade agreement which allows duty-free import of many items, chief minister E K Nayanar told the state assembly today.

Replying to a discussion on a private member's resolution on the subject, Nayanar said he had already written to the Centre and taken up the matter with Prime Minister Atal Bihari Vajpayee when he visited the state last month.

So far, the state had not received any official communication from the Union commerce ministry regarding the commodities to be excluded from the purview of the pact. It was learnt from media that the negative list was yet to be finalised. Also, the union commerce minister was expected to visit the state shortly and certainly, the issue would figure in the discussions with him, Nayanar said.

The duty-free import of coconut, rubber, spices, tea and coffee would result in the dumping of these commodities in the country and such a possibility would seriously affect the interests of farmers at a time when the cash crops were suffering price crash, he said.

As in the case of cash crops and spices, import of coir yarn and coir products would hit hundreds of workers engaged in this traditional sector. Similarly, there was a possibility of free flow of material for making footwear which would further dim prospects of rubber-growers in the state, who were already reeling under severe price fall of the commodity, Nayanar said.

Seeking leave for the resolution, M Narayanan (CPI-M) wanted the house to express its grave concern over the negative impact of the trade pact on Kerala's economy and press the Centre to delete provisions for import of cash crops and spices duty-free.

After the reply of the chief minister, the house unanimously adopted the resolution. The Congress-led opposition UDF had earlier boycotted the day's proceedings in protest against the state government's refusal to subsidise the recent hike in ration articles.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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