Processed farm products get exports nod

NEW DELHI: The government has allowed export of processed agricultural products even if there is a ban on basic farm produce like wheat , other cereals , milk , onion and groundnut .The decision was taken at the Cabinet Committee in Economic Affairs ( CCEA) meeting on Thursday .

Now, there will be an uninterrupted export of products like casein , peanut ,butter ,cheese,curd andother cereal items even if the government imposes a ban on theexportof food grains or milk .

“The export , however , will be regulated by tariff imposition . In a year , when the output of primary farm produce like wheat is low, the export will be restricted by levying a higher export duty on wheat flour and other wheat products ,” said a minister , who attendedthe meeting . Whenever the government imposes a ban on primary farm products , value-added products automatically get banned .

Value-added products like meal pellets , dairy spread and wheat flour form a small proportion of the overall agriculture exports and don’t threaten food security . According to United Nations Commodity Trade Statistics Database , India’s share in world agriculturetrade isonly 1.48 %. Exports have moved from $12.62 million in 2009-10 to $27.36 billion in 2011-12 due to the freeing up of agri-exports in the last couple of years .

Processed food export has contributed a lot to foreign exchange earning . In the last three years , the country has consistently earned around $600 million per year from shipment of products proposed to be shielded from export ban . “The government will continue earn valuable foreign exchange on a continuous basis without any financial implication .

The decision to allow unhindered export will certainly help the country to build a reputation as a reliable supplier while earning good revenues ,” said a commerce ministry official .