The Hindu Business Line : `Proposals will give an edge to agro exports'

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Mangalore Feb. 28 The budget proposals to reduce import duty and excise concessions on some agriculture inputs and food processing sector would help sharpen competitive edge of Indian agro exports, according to Mr Walter D'Souza, Convenor of the FIEO (Federation of Indian Export Organisations) Committee on Agro Exports and AEZ.

Welcome step

Mr D'Souza said the proposals to reduce import duty on equipment, plant and machinery meant for drip irrigation, sprinklers, and for food processing machinery from 7.5 per cent to 5 per cent and the proposal to extend 100 per cent excise duty exemption for the food processing sector are a welcome step. "These will sharpen the competitive edge of Indian agro exports in the global markets," he said.

It is heartening to note that the budget has tried to give impetus to the agriculture sector with high priority. "We are of the opinion that only Indian agro exports can generate higher return for the Indian agriculture produce, provided the benefits proposed in the budget are substantially raised to the desired levels," he said.

The growth in foreign trade will be possible, only if the agro exports grow at an average of 20 per cent per annum as against the current 10 per cent. To achieve this, it is desired that the Union Finance Ministry makes supplementary allocation to bring Indian agro exports industry on par with global standards.

Cashew

Mr D'Souza, who is also the Chairman of the Cashew Export Promotion Council of India (CEPCI), said a financial mechanism for cashew, coffee, rubber, spices and coconut on line with the rejuvenation scheme for tea is a welcome step. "While the details got to be worked out, we appeal that his scheme will include the urgent need to modernise the agro exports industry," he added.

Mr G. Giridhar Prabhu, Convenor of Vision 2020 committee of CEPCI, said that cashew sector would look forward to any direct assistance for cultivation and sustaining of the crop.

Welcoming the decision to constitute a special purpose fund for plantation sector, Mr K. Prakash Rao, President of the Karnataka Cashew Manufacturers' Association, said that the budget has given significant focus on plantation sector. In that cashew sector also figures prominently. The budget proposal will help in reaching the target of 19.5 lakh tonnes of cashew production by 2020, he added.

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