how to make india self reliant in agriculture sector

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Information about how to make india self reliant in agriculture sector

Published on January 6, 2009

Author: bhansalijayanti



some strategy and measures to promote agrigulture goods in exports and if u want t odownload mail me ur email id and i will sent u the ppt

Export A limited number of items, mostly primary commodities or processed agricultural products, are  subject to duties. Currently, the only products subject to an export tax (at the rate of 10%) are  goat, sheep and bovine leathers. Products may also be subject to a minimum export price. The  list of products subject to minimum prices includes basmati and non­basmati rice, cotton, and  hard and soft cotton waste. Most minimum export prices are specifiedin dollars on an fob basis.  Settlement of Bills: The Government prescribes conditions for exchange control and settlement  of bills related to exports under the authority of the Foreign Exchange Regulation Act, 1973. For  normal commercial exports to all countries, except Nepal and Bhutan, exporters are required to  complete the GR Form in duplicate. The GR Form covers exports not made by post.  With few exceptions, all exports must be declared on the appropriate form and the exporter's  code number as assigned by the Reserve Bank of India must be shown on the form. The payment arrangements are letter of credit, sight draft, time draft and shipment on  consignment. The time limit for settlement of export proceeds, that is, the amount representing  the full export value of the goods, is six months. A maximum of 15 months is allowed for exports  to Indian­owned warehouses abroad.  Documents: The following documents are required for exports: 1. GR form;  2. export licence;  3. export declaration;  4. customs entry form;  5. customs invoice;  6. commercial invoice;  7. certificate of origin;  8. bill of lading/air waybill;  9. packing list. 

Special documents may be required depending on the type of product or destination. Certain  export   products   may  require  a   quality   control   inspection   certificate   from  the   Export  Inspection  Agency. Some food and pharmaceutical product may require a health or sanitary certificate for  export.   To cover products under GSP (generalized system of preferences) a certificate of origin may be  required.   The   Export   Inspection   Agency,   the   various   export   promotion   councils,   chambers   of  commerce or the regional offices of the Chief Controller of Imports and Exports are the responsible  bodies for issuing the certificate of origin. In India, the main legislation concerning foreign trade is the Foreign Trade (Development  and Regulation) Act, 1992. The Act provides for the development and regulation of foreign trade  by facilitating imports into, and augmenting exports from, India and for matters connected therewith  or incidental thereto. As per the provisions of the Act, the Government :­ (i) may make provisions  for   facilitating   and  controlling  foreign  trade;  (ii)  may  prohibit,  restrict  and  regulate  exports   and  imports,  in   all   or  specified  cases  as  well  as  subject  them  to   exemptions;  (iii)  is  authorised  to  formulate and announce an export and import policy and also amend the same from time to time,  by   notification  in   the   Official   Gazette;   (iv)   is  also   authorised  to   appoint  a   'Director  General  of  Foreign Trade' for the purpose of the Act, including formulation and implementation of the export­ import policy.  Accordingly,   the  Ministry   of   Commerce   and   Industry  has   been   set   up   as   the   most  important organ concerned with the promotion and regulation of foreign trade in India. In exercise  of the powers conferred by the Act, the Ministry notifies a trade policy on a regular basis with  certain   underlined  objectives.  The   earlier  trade   policies  were  based  on   the   objectives  of   self­ reliance and self­sufficiency. While, the later policies were driven by factors like export led growth,  improving efficiency and competitiveness of the Indian industries, etc.  With economic reforms, globalisation of the Indian economy has been the guiding factor in  formulating the trade policies. The reform measures introduced in the subsequent policies have  focused   on   liberalization,   openness   and   transparency.   They   have   provided   an   export   friendly  environment  by   simplifying   the   procedures   for   trade   facilitation.   The   announcement   of   a  new  Foreign Trade Policy  for a five year period of 2004­09, replacing the hitherto nomenclature of  EXIM Policy by Foreign Trade Policy (FTP) is another step in this direction. It takes an integrated  view   of   the   overall   development   of   India’s   foreign   trade   and   provides   a   roadmap   for   the  development of this sector. A vigorous export­led growth strategy of doubling India’s share in global  merchandise trade (in the next five years), with a focus on the sectors having prospects for export  expansion and potential for employment generation, constitute the main plank of the policy. All  such measures are expected to enhance India's international competitiveness and aid in further 

increasing the acceptability of Indian exports. The policy sets out the core objectives, identifies key  strategies,   spells   out   focus   initiatives,   outlines   export   incentives,   and   also   addresses   issues  concerning institutional support including simplification of procedures relating to export activities. The key strategies for achieving its objectives include:- Unshackling of controls and creating an atmosphere of trust and transparency;   Simplifying procedures and bringing down transaction costs;   Neutralizing incidence of all levies on inputs used in export products;   Facilitating development of India as a global hub for manufacturing, trading and services;   Identifying and nurturing special focus areas to generate additional employment opportunities,   particularly in semi­urban and rural areas;  Facilitating   technological   and   infrastructural   upgradation   of   the   Indian   economy,   especially   through import of capital goods and equipment;  Avoiding inverted duty structure and ensuring that domestic sectors are not disadvantaged in   trade agreements;  Upgrading the infrastructure network related to the entire foreign trade chain to international   standards;  Revitalizing the Board of Trade by redefining its role and inducting into it experts on trade policy;   and  Activating Indian Embassies as key players in the export strategy.  The FTP has identified certain thrust sectors having prospects for export expansion and potential  for   employment   generation.   These   thrust   sectors   include:   (i)   Agriculture;   (ii)   Handlooms   &  Handicrafts;   (iii)   Gems   &   Jewellery;   and   (iv)   Leather   &   Footwear.   Accordingly,   specific   policy  initiative for these sectors have been announced.  For the agriculture sector :-

A new scheme called Vishesh Krishi Upaj Yojana (Special Agricultural Produce Scheme)  to boost exports of fruits, vegetables, flowers, minor forest produce and their value added  products has been introduced. Under the scheme, exports of these products qualify for  duty free credit entitlement (5 per cent of f.o.b value of exports) for importing inputs and  other goods; Duty free import of capital goods under Export Promotion Capital Goods (EPCG) scheme,  permitting the installation of capital goods imported under EPCG for agriculture anywhere  in the Agri­ Export Zone (AEZ); Utilizing  funds  from  the   'Assistance  to   States  for   Infrastructure   Development  of   Exports  (ASIDE) scheme' for development of AEZs; Liberalization of import of seeds, bulbs, tubers and planting material, and liberalization of the  export of plant portions, derivatives and extracts to promote export of medicinal plants and  herbal products.  For the handlooms and handicraft sector :- • Enhancing   to   5   per   cent   of   f.o.b   value   of   exports   duty   free   import   of   trimmings   and  embellishments for handlooms and handicrafts; • Exemption of samples from countervailing duty (CVD); • Authorizing Handicraft Export Promotion Council to import trimmings, embellishments and  samples for small manufacturers; and • Establishment of a new Handicraft Special Economic Zone.  For the gems and jewellery sector :- • Permission for duty free import of consumables for metals other than gold and platinum up  to 2 per cent of f.o.b value of exports;  • Duty free re­import entitlement for rejected jewellery allowed up to 2 per cent of f.o.b value  of exports;  • Increase in duty free import of commercial samples of jewellery to Rs.1 lakh; and  • Permission to import of gold of 18 carat and above under the replenishment scheme. 

For the leather and footwear sector, the specific policy initiatives are mainly in the form of reduction in the incidence of customs duties on the inputs and plants and machinery. These include:- Increase  in   the  limit  for  duty  free  entitlements  of  import  trimmings,  embellishments  and  footwear components for leather industry to 3 per cent of f.o.b value of exports and that for  duty free import of specified items for leather sector to 5 per cent of f.o.b value of exports;  Import   of   machinery   and   equipment   for   Effluent   Treatment   Plants   for   leather   industry  exempted from customs duty; and  Re­export   of   unsuitable   imported   materials   (such   as   raw   hides   and   skin   and   wet   blue  leathers) has been permitted.  AGRICULTURE SECTOR Strategic Themes

[1] Expanding Trade Opportunities and Improving Trade Capacity of Producers and Rural Industries Regional growth, rapidly expanding urban areas, regional trade agreements, and the advent  of World Trade Organization accords have meant that agricultural producers and entrepreneurs— both men and women—face greater domestic competition for agricultural products. It also means  that   there   are   significantly   expanded   opportunities   for   participating   in   markets,   whether   local,  national,   regional,   or   international.   However,   governments   must   create   enabling   policies   and  institutional   environments   that   facilitate   producers’   access   to   these   markets.   And   to   achieve  increased levels of income, agricultural producers and entrepreneurs must have the capacity to  respond to such opportunities. To enable producers and rural industries to better connect themselves to agricultural trade  opportunities, We should  support the development of sound policy environments  that enable open markets, private  sector   investment,   and   gender­equitable   access  to   factors   of   production,   products,   and  income.  promote   effective   institutions  and   governance  to   enable   female   and   male   producers   to  acquire, protect, and use the assets they need to take advantage of emergent market and  trade opportunities.  expand rural finance to increase the capacity of producers and producers’ groups to invest  in   production   and   processing   operations   and   over­come   gender­based   constraints   to  access.  strengthen producers’ groups and other rural organizations to enable them to gain market  mastery and reduce transaction costs; gain access to and effectively use information on  domestic, regional, and international markets; and facilitate technology transfer.    enhance access to production, storage, and processing technologies to enable male and  female producers to provide products demanded by the market in the right qualities and at  competitive prices focus on more nutritious foods (natural and fortified) that can be marketed  as higher­value and benefit producers and consumers.

[2]. Improving the Social, Economic, and Environmental Sustainability of Agriculture Because biodiversity and natural resources are central to the livelihoods of rural populations  throughout the developing world, they cannot be separated from the broader context of social,  economic, and development challenges. Sound environmental and natural resource management  is   fundamental   to   the   sustainability   of   agricultural   production   systems   and   economic   benefit  streams, and offers possibilities of increasing productivity in the future. For rural populations, access to and control over natural resources are major governance  issues. Improved governance and economic frameworks maximize the ability of rural populations to  benefit from their resource base, while creating a powerful force for preserving land, water, and  biodiversity over the long term. Sound environmental managementis key to reducing vulnerability of  rural communitiesinan evolving global marketplace of increasing competitiveness in agricultural and  natural resource­based enterprises. To ensure positive benefits to local incomes and the ecosystem, We should restore   the   health   of   land,   water,   and   forestry   resources   and   develop   sustainable   and   1. renewable   energy   sources  to   regain   productivity   of   degraded   lands;   maintain   viable  ecosystems; reduce vulnerability to disasters; and ensure adequate quality and quantity of  resources for domestic, industrial, agricultural, and environmental needs. support  the  development  and  application  of  environmental  assessment  methodologies  that  2. enable   communities   and   implementing   partners   to   better   assess   environmental   risks   and  damage due to natural and conflict­related disasters. strengthen local capacity for integrated management of agricultural and natural landscapes to  3. maximize benefits to individual women and men, while valuing public goods. improve   analytical   and   economic   frameworks   linking   agriculture   and   natural   resource   4. investments  to   achieve  the  dual  goals  of  resource  protection  and  economic  growth,  while  enhancing competitiveness in global economic networks protect natural ecosystems by finding organisms endangered in nature and securing them in   5. seed banks and botanical gardens to improve biodiversity management—including agricultural.

[3]. Mobilizing Science and Technology and Fostering Capacity for Innovation Crop and livestock research has led to the production of more food at lower costs. Doubling  and tripling yields mean that wheat, rice, and maize are now cheaper for consumers by half—in  real terms—than 40 years ago. Overall, the productivity growth in staple food crops has made a  critical contribution to agricultural development and reductions in poverty and hunger.8 Continued  research and development are needed to sustain these achievements. Growth   in   staple   food   crops  alone   does   not   ensure   agricultural   development  and   food  security. Access to nutritious food is also important, as is the need to improve the availability of  protein and micronutrients in staple foods and vegetables. Another way to address the nutritional  aspects   of   food   security   is   through   access  to   a   variety   of   foods.   Animal­source   proteins   and  micronutrients   can   have   long­term   impact   on   productivity   and   economic   development;   these  nutrients have been shown to have a strong and positive impact on the cognitive, physical, and  behavioral development of children.9 Advances in science and technology that enhance protein 

content and increase bioavailability of micronutrients will contribute positively to the health status of  poor   consumers,   especially   girls   and   boys   particular   culture,   and   ensure   that   investments   in  science and technology yield maximum benefits support   technology   development   and   application,   addressing   the   different   needs   and  • constraints   of   men   and   women   throughout   the   agricultural   sector,   to   raise   agricultural  productivity for  increased  economic competitiveness;  stabilize  and  enhance  food, feed,  and  fiber   production   in   developing   countries;   increase   protein   con­tent   and   bioavailability   of  micronutrients   in   staple   foods   and   vegetables;   and   reduce   environmental   degradation   and  pollution. expand public and private sector partnerships and networks to facilitate collaboration on applied  • research activities by networks of specialists on crops, including staple foods and vegetables;  natural resource management; and other aspects of the food, feed, and fiber system. foster science and technology innovation capacity and national innovation systems to meet the  • challenges of today’s agricultural environment, including volatile climatic and market changes,  evolving grades and standards, infectious disease, political instability, and the special needs of  women. [4] .Strengthening Agricultural Training and Education Outreach, and Adaptive Research Major  advances  in   agricultural  science  and   technology  over  the   past   decade  have  had  uneven   impacts   on   people’s   productivity   and   livelihoods.   Some   farmers   perceive   some   new  technologies as too risky, either in production or financial terms. Farmers’ use of other technologies  is limited by lack of access to necessary inputs (such as fertilizer and pesticides) or markets. Still  othe potentially beneficial technologies are never adopted because farmers never hear about them. Over the past 20 years, new information and communication technologies have affected  opportunities for productive enterprises as well as trade and commerce. Such technologies have  enabled   farmers   to   tap   into   new   markets   and   acquire   information   about   new   production 

approaches.   The   ability   to   access   and   manage   information   is   fast   becoming   a   fundamental  requirement for rural producers to participate effectively in an increasingly global food, feed, and  fiber system. Education and training programs that reach out to women and men who are rural producers  and   others   in   related   processing   and  marketing   chains  can   benefit   from  new   information  and  communication technologies. ■  support education and training tailored to reach women and girls as well as long­term training  and basic education curricula in the agricultural sciences and related subjects to strengthen the  human and institutional capacity of developing countries ■  develop and extend innovative rural information and communication technology systems that  address the differential abilities and needs of men and women to improve access by dispersed  farmers and agribusiness entrepreneurs to information across an array ofagricultural disciplines  and uses. ■  improve problem­based, site­specific learning approaches to solve problems—local, organiza­  tional, and site­specific—by using adaptive research and getting “on­the­shelf ” solutions into the  field What to Export Commodity Composition of Exports Over the past decade, exports (measured in rupees) have  grown by 21.7% on an average. Some commodities have enjoyed much faster export growth than  others. Given below is the export performance, in Million US$, of some commodities during 1994­ 95 and its change in percentage terms over levels in 1993­94.

Composition of Indian Export 1994-95 1995-96 1995-96 1996-97 16.0 19.2 16.1 20.6  Agriculture& allied 1. Tea 1.2 1.1 1.1 1.0  2. Coffee 1.3 1.4 1.6 1.6  3. Cereals 1.5 4.7 3.5 4.1  5. Spices 0.7 0.7 0.7 0.9  6. Cashewnuts 1.5 1.2 1.3 1.3  7. Oil meals 2.2 2.2 1.5 2.1  8. Fruits & vegetables 0.7 0.7 0.7 0.6  9. Marine products 4.3 3.2 2.8 3.0  10. Ores and minerals 3.8 3.7 4.0 3.7  11. Iron ore 1.6 1.6 1.8 1.4  12. Other ores and minerals 1.0 0.9 1.1 1.1  13. Manufactured goods 78.1 75.4 77.8 73.5  14. Leather & manufactures 4.0 3.6 3.8 3.1  15. Leather footwear 2.1 1.8 1.2 1.1  16. Gems & jewellery 17.1 16.6 16.9 14.0  17.   Drugs,   pharmaceuticals   &   fine  3.0 3.2 3.1 3.3  chemicals 18.   Dyes   /   intermediates   &   Coal   tar  1.8 1.5 1.6 1.6  chemicals 19. Manufactures of metals 2.7 2.6 2.6 3.0  20. Primary & semi­finished iron & steel 1.6 1.6 1.8 1.3  21. Electronic goods 1.6 2.1 2.0 2.4  22. Cotton yarn, fabrics, madeups etc 8.5 8.1 8.2 9.2  23. Ready made garments 12.5 11.6 12.0 11.3  24. Handicrafts 3.9 3.5 3.8 3.5  25. Crude & petroleum products 1.6 1.4 1.6 1.6  26. Others & unclassified items 0.6 0.4 0.5 0.6           Grand Total 100.0 100.0 100.0 100.0 News Article

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