Commerce Ministry upset over repeated bans on farm exports
The Commerce Ministry has expressed its displeasure to the Food Ministry over frequent bans on export of agricultural commodities saying such restrictions depress prices and can potentially harm the interest of farmers.
By PTI |
NEW DELHI: The Commerce Ministry has expressed its displeasure to the Food Ministry over frequent bans on export of agricultural commodities saying such restrictions depress prices and can potentially harm the interest of farmers.
"Every time there is a slight rise in price of a particular commodity, the Food Ministry rushes for a ban on exports without realising that the image of the country as a dependable supplier gets damaged," a senior Commerce Ministry official said.
Earlier this month, the government slapped a ban on export of non-Basmati rice to improve domestic availability of the foodgrain and check its prices. Earlier it had banned exports of wheat and pulses.
While the ban on skimmed milk powder was recently lifted, producers fear that restrictions may come again following a revision in prices by major milk cooperatives and private suppliers.
Exporters of agriculture commodities complained to the Commerce Ministry that if the ban was not lifted, they would lose overseas markets which they had built after spending considerable money and efforts.
The official said ad hoc policies of the Food Ministry have damaged interests of industries like sugar.
"Last year, they put a ban on sugar export because domestic prices were high. When the farmers went in for increased sugarcane production, we were faced with a glut and now the government is giving subsidy on exports," he said.
India's export of agricultural commodities was worth around 4,885 million dollars during April-October 2005-06.
"Every time there is a slight rise in price of a particular commodity, the Food Ministry rushes for a ban on exports without realising that the image of the country as a dependable supplier gets damaged," a senior Commerce Ministry official said.
Earlier this month, the government slapped a ban on export of non-Basmati rice to improve domestic availability of the foodgrain and check its prices. Earlier it had banned exports of wheat and pulses.
While the ban on skimmed milk powder was recently lifted, producers fear that restrictions may come again following a revision in prices by major milk cooperatives and private suppliers.
Exporters of agriculture commodities complained to the Commerce Ministry that if the ban was not lifted, they would lose overseas markets which they had built after spending considerable money and efforts.
The official said ad hoc policies of the Food Ministry have damaged interests of industries like sugar.
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"Last year, they put a ban on sugar export because domestic prices were high. When the farmers went in for increased sugarcane production, we were faced with a glut and now the government is giving subsidy on exports," he said.
India's export of agricultural commodities was worth around 4,885 million dollars during April-October 2005-06.
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