At meet with Piyush Goyal , states bat for agri …

At meet with Piyush Goyal , states bat for agri export boost : Lift curbs , allocate infra funds

The government has lifted restrictions on wheat, broken rice, non-basmati white rice, sugar, and onions, in response to demands from ministers to boost farmers income. These decisions were made ahead of Assembly elections in Haryana and Maharashtra. The Commerce Minister emphasized the government s focus on ensuring food availability for domestic needs before allowing exports. The export of several food items was previously restricted to control food inflation, which remained high due to supply chain disruptions caused by the pandemic, heatwaves, and the Russia-Ukraine war. Retail food inflation was at 5.66% in August. Agricultural economists argue that export bans protect the middle class from inflation at the expense of farmers. State ministers also requested funds for infrastructure development to enhance exports under the Districts as Export Hubs initiative. The initiative aims to identify products with export potential from all 765 districts in the country. However, no financial assistance has been provided for this initiative. Exporters expressed concerns over credit flow, container shortages, missed shipping schedules, and logistical challenges due to the Red Sea crisis. They highlighted the surge in freight rates, which negatively impacted their business. Solutions such as tonnage tax and GST rate concessions were discussed. Sudhir Sekhri from the Apparel Export Promotion Council (AEPC) called for the liberalization of raw material imports, particularly high-quality man-made fiber (MMF) fabric. He suggested a new scheme that allows garment exporters to import duty-free fabric with import entitlement fixed in value terms only. Sekhri also emphasized the need for India to prioritize sustainability compliance-related infrastructure, given the increasing importance of environmental, social, and governance (ESG) compliance in overseas markets. He proposed the establishment of a refinancing scheme to promote sustainability and green manufacturing, similar to schemes in competitor countries like Bangladesh. This scheme would provide long-term soft loans at a maximum interest rate of 5% to encourage sustainable practices in the industry.

Source: indianexpress.com
Published on 2024-09-13

Adani Group Shines in TIME World Best Companies 2024 List »

Greenwashing

Related news