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Lower EU duty on cut flowers -- Apeda sees new markets blooming

Our Bureau

KOLKATA, Feb. 3

THE European Union has lowered import duty for cut flowers and orchids from India by 2.2 percentage points to five per cent. This move would facilitate India's floral entry into the European market according to the Agricultural and Processed Food Products Exports Development Authority (Apeda) Chairman, Mr Anil Swarup

India exports flowers mainly from Karnataka. Tamil Nadu is also growing as a flower exporting state with an flower export processing zone on the toe.

Since the Centre's initiative enunciated in chapter 16 of the Exim Policy last year, an investment of around Rs 450 crore has been made or tied up already for setting up 15 export processing zones in the country.

Apeda is also facilitating the establishment of a perishable cargo centre in Mumbai at a cost of Rs 15 crore as part of establishing a `cold chain' from farm to the market. Apeda expected exports of agri-products of around Rs 500 crore in 2002-2003, Mr Swarup said. He was here to sign an MoU with the Tripura Government for setting up an export-processing zone for pineapple in that State.

Mr Swarup said the Reserve Bank of India had accepted Apeda's argument that bank credit for farmers aspiring to become exporters should be extended at an 8 per cent interest rate in line with the rate applicable for exporters of agri-products. Earlier, the loans to cultivators carried an interest of 13 per cent.

Mr Swarup said: ``We have recently experimented with shipping mangoes in cold containers instead of air-lifting them. A protocol has been developed for it. However, there is still a hitch in terms of an insignificant shelf life at the retail end. If successful, the new system could usher in a logistic breakthrough for mangoes compared to exports by air and also a reduction in cost'', he observed.

Apeda was in the process of setting up an `e-facilitation' network for monitoring agri-export zones (AEZs). He added the first AEZ in West Bengal for pineapple would have Italian collaboration.

As soon as the eastern region picks up in terms of AEZ activity, Apeda would think of facilitating the setting up of a multi-chamber perishable cargo centre. Currently, Kolkata and Guwahati airports have small such facilities, the Apeda Chairman pointed out.

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