Prime Minister: Asean Trade Agreement will not Hurt Kerala Farmers
New Delhi -August 3, 2009 The India-ASEAN Trade in Goods Agreement has completely protected the interests of farmers in Kerala by insisting on a large Negative List of tariff lines under which no tariff concession whatsoever would be provided to the ASEAN countries, assured Prime Minister, Dr. Manmohan Singh and the Commerce Minister, Anand Sharma to a delegation of political representatives from Kerala headed by the state Chief Minister, Shri V.S. Achuthanandan. The India-ASEAN FTA negotiations were twice suspended primarily because of India's insistence on providing strong protection to its agriculture and labour intensive sectors.
The proposed Trade in Goods Agreement has a Negative List of 489 tariff lines of which 302 are of the agriculture sector. These include many of the items of interest to Kerala such as Cashew Nut Kernels, Natural Rubber, Marine Products such as Tunas, Shrimp, Prawn, etc. The list has been drawn up after a series of consultations with the stakeholders and government agencies, the PM tried to convince state leaders.
As far as tariff concession on Palm Oil is concerned, India has agreed to reduce tariff on Crude Palm Oil (CPO), Refined Palm Oil (RPO) to 37.5% and 42.5% respectively by December 31, 2018. Incidentally, the current tariff on CPO and RPO are 0% and 7.5% respectively. Thus, it would be seen that India has negotiated a very high level of protection for our domestic edible oil producers by proposing a high level of tariff even at the end date of December 31, 2018.
The Commerce Minister said that as far as the plantation economy is concerned, there are some structural deficiencies and these are being separately addressed.
Regarding Rubber plantations, an assistance of Rs.32.33 crore under the Rubber Plantation Development Scheme with a target of 30000 hectare is in operation under the 11th Plan and the replanting subsidy has recently been enhanced from Rs.19500 to Rs.29250 per hectare. Further enhancement is also being examined.
A proposal for rejuvenation, replanting, value addition, marketing etc. of pepper is under the active consideration of the Government. This scheme would enable India to compete with any future imports of pepper. Prime Minister told the delegation that a Group of Ministers with representation from Ministers from Kerala is being set up to ensure that the interests of Kerala are fully protected in the ASEAN -FT A Agreement and the Group would also consult with the Chief Minister of Kerala on matters relating to interests of Kerala. Prime Minister also mentioned that Kerala has always benefited from its outward orientation and when it sought global opportunities.
Agricultural Diesel Subsidies to States Announced
New Delhi -August 3, 2009 The Centre has decided to give financial assistance to the State Governments/UT Administrations which have decided to introduce diesel subsidy for the farmers to enable the farmers to provide supplementary irrigation through diesel pump sets in the drought and deficit rainfall affected areas to protect the standing crops.This decision, taken in view of deficit rainfall in various parts of the country during South-West Monsoon and its likely impact on farming operations during the on-going Kharif season, will help in mitigating the adverse impact of drought/deficit rainfall conditions on foodgrain production.
A communication to this effect has been sent to all State and Union Territories today.
The applicability of the scheme and the mode of implementation are as follows.
(i) The scheme on Diesel Subsidy will be implemented with the participation of the State Governments/UT Administrations, with a view to offset the cost of diesel used for pumping water for providing supplementary irrigation.
(ii) The scheme will be applicable to such districts where the rainfall deficit is more than 50% as on 15th July, 2009, as reported by IMD, or to such talukas/districts, which have been declared as drought affected areas by the respective State Governments/UT Administrations.
(iii) The farmers in the affected regions would be covered between 15th July, 2009 and 30th September, 2009.
(iv) It is intended to provide 50% subsidy on the cost of diesel to the affected farmers for upto three protective irrigations subject to a maximum total subsidy of Rs 1000 per hectare, limited to maximum of two hectares per farmer. Assistance so provided through subsidy shall be shared between the Government of India and the State Government/UT Administration concerned on 50:50 basis and subject to the participating States/UTs willing to contribute their share.
(v) It would be the responsibility of the State Governments / UT Administrations concerned to initially extend the full subsidy amount to the farmers in the drought and deficit rainfall affected areas.
(vi) In case the State Governments/UT Administrations concerned decide on a higher percentage of subsidy, the Government of India’s 50% contribution would be capped to a maximum of 50% cost of diesel, subject further to a cap at Rs.7.50 per litre. In case the State Government/UT Administration concerned offers a lower subsidy, then GoI’s share will be limited to 50% of the said lower subsidy amount. In no case shall the Government of India’s contribution be more than Rs 7.50 per litre and Rs 500 per hectare.
(vii) The scheme will operate on reimbursement basis. The State Government/UT Administration would claim reimbursement as special grants-in-aid for getting the Central share of the subsidy so paid after full disbursement of the subsidy amount.
The modalities of disbursement of subsidy to the farmers would be devised by the State Governments/UT Administrations concerned (including cases in which the State Government/UT Admn. decides to introduce this scheme in their State/UT) and the modality adopted by them would be intimated to the Ministry of Agriculture by 15th August, 2009.
