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Mr Balasaheb Vikhe Patil, Minister of State for Finance, and Mr T.C. Venkat Subramanian, Managing Director, Exim Bank, at the national seminar on `Export of agricultural products: Prospects & Challenges' in Chennai on Thursday.

CHENNAI, May 23

A NATIONAL task force is to be set up to promote agriculture exports, streamline and increase efficiency of credit delivery in agriculture, development schemes and coordinate the functions of various export development agencies and regulatory bodies.

An announcement to this effect was made here on Thursday by the Union Minister of State for Finance, Mr Balasaheb Vikhe Patil, at the national seminar on `Export of agricultural products: Prospects and challenges' organised by the Export-Import Bank of India.

Earlier, Mr Sompal, Planning Commission member, in his keynote address, had called for the establishment of the task force that would increase competitiveness of Indian agriculture in the international market and enable farmers access international markets. The task force would look at the market preferences, compile comprehensive product profiles, assess sanitary, phytosanitary and quarantine issues and claims, address infrastructure requirements, recommend fiscal and financial packages, and remove policy and procedural constraints.

Mr Patil said that under the World Trade Organisation (WTO) all countries have committed to comprehensive restorations aimed at substantial improvement in market access and reduction and phasing out of export subsidies. This provides an opportunity for Indian farmers to access global markets. However, developed countries continue to increase subsidy support to agriculture. For instance, the US Senate recently passed a the farm bill providing for subsidies worth $190 billion over the next 10 years and the EU's subsidy to farmers totals about $1 billion per day. Agriculture subsidy in India works out to about $66 per farmer against that of the US, which pays $21,000, and the EU, which pays $17,000.

Globalisation of Indian agriculture presents opportunities for the farmers. However, focus will have to shift from demand for subsidies and favours and waivers to technology application, infrastructure and diversification. However, the culture of reforms should be focussed on benefiting the farmers.

Mr Joe Cunnane, First Counsellor, Economic & Commercial European Union, Delegation of the European Commission to India, Nepal and Bhutan, said that India would have to meet the sanitary and phytosanitary conditions dictated by its export markets. While these are often considered to be non-tariff barriers, there are good reasons that the quality standards are applied. These apply equally to domestic and imported produce. The EU cannot afford to reduce the standards because of public concerns. However, the EU can help India meet the standards and discussions are on with the Government.

The EU is among the largest importers of agriculture produce and India's largest trading partner contributing to 25 per cent of its trade. However, India accounts for just 1.3 per cent of the EU's trade. Most of India's exports to the EU were in the form of primary agriculture commodities and greater focus was needed on value addition. Food processing offers major scope for interaction between the EU and India, he said.

Mr Yutaka Miyahara, Director-General, Japan External Trade Organisation, said that Japan imports more than 60 per cent of its food requirement, on calorie basis. It imports about $26 billion annually from India and its total imports are estimated at $381 billion. Quality and price consciousness was high among the Japanese consumers. Most Indian products are exposed to stiff competition in the markets in Japan. Exporters will have to aggressively market their products and build direct contacts with the importers, he said.

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