FTP gives tax sops to agri exports
The government announced tax incentives for exporting some items of daily use such as soyabean oil and bakery products.
By PTI |
NEW DELHI: At a time when shortage of essential commodities is exerting pressure on inflation, the government on Thursday announced tax incentives for exporting some items of daily use such as soyabean oil and bakery products.
The annual review of Foreign Trade Policy expanded the list of products eligible for concessions under the 'Vishesh Krishi and Gram Udyog Yojana'. These include coconut oil, soyabean oil, potato flakes, meals and flours, cardamom, food preparations like soups, sauces, pasta and bakery products.
Already, exports of products like spices, fruits and vegetables are growing rapidly at 35-40 per cent per year.
Rise in prices of food articles and vegetables played a major role in pushing up inflation beyond six per cent in recent past, forcing RBI to take corrective measures. Even when inflation has fallen below six per cent, prices of food articles group showed a rising trend.
Announcing the measures, Commerce Minister Kamal Nath said: "I lay the highest emphasis on developing agricultural exports to ensure that product diversification improves in Indian agriculture."
But the minister evaded a reply to a query whether these measures would lead to further supply side problems of agriculture products and push up inflation.
However, rating agency Crisil's chief economist Subir Gokaran said the measures announced in the policy would not have much impact on the supply side situation.
"The kind of products that he (Kamal Nath) is talking about, I don't think will have disruptive impact on supply side situation," he said.
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