May 03, 2000, Wednesday / Source: PTI news agency, New Delhi, in English
Text of report in English by Indian news agency PTI
New Delhi, 24th April: Indian government Monday [24th April] assured the parliament it will protect the interests of farmers by raising agricultural subsidies if imports, after removal of quantitative restrictions (QRs), adversely affected domestic farm sector.
Replying to questions in the Rajya Sabha (upper house of parliament), Junior Minister for Commerce and Industries Omar Abdullah said the government has many weapons in its arsenal, including higher import duty and anti-dumping measures, to protect Indian farmers against cheap agricultural imports.
The minister was replying to half an hour discussion on the issue which was allowed by Chairman Krishan Kant following demands from Janata Dal (Secular) and Left parties, who said it involved the interest of Indian farmers.
Denying suggestions by Congress leader Pranab Mukherjee that the government acted in haste to advance the review of the QR list, Abdullah said India was forced to remove QRs by next fiscal as it had lost a case at the dispute settlement body of the World Trade Organization (WTO).
Though India originally had time till 2003 to review QR, the government was taken to DSB by United States claiming that New Delhi's improved balance of payments situation did not warrant time till 2003 to remove QRs, the minister said.
Abdullah said the government was monitoring the situation and would not hesitate to take measures to protect Indian farmers, if the situation warranted.
He said India's tariff bindings at WTO for most of agricultural items were fairly high and effective rates of customs duties could be raised to those levels, in case there was any evidence of substantial increase in imports.
For instance, the government had increased the import duty on rice, maize and apples in the last budget to protect domestic farmers. We could consider other items if there is a need, he added.
Allaying fears that the removal of QRs would lead to large-scale imports, Abdullah said agricultural imports have actually fallen down since India started removing QRs in 1990.
The minister said prices of certain commodities like coffee and betel nut were coming down due to softening of international prices and not due to removal of QRs.
He said most of these items were being imported through licences even before the removal of QRs. If there is a market for a product, it would come in whether the government likes it or not.
He also said the government would have to strike a balance between the interests of the consumers and farmers.:
