Wednesday,
September 4, 2002, Chandigarh, India
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Upgrade marketing facilities to boost farm output Apropos of the report “Indian No. 2 in rice export” (August 20), of the 25 million tonnes of world trade in rice, India exported 4.5 million tonnes between April, 2001 and July, 2002. Of this, Punjab's contribution was 3.5 million tonnes i.e. nearly 80 per cent of rice exported from India was contributed by Punjab alone. Various studies conducted in this regard show that Punjab enjoys the highest comparative advantage in rice production and the export competitiveness of Punjab rice is also the best. To give a push to improving the competitiveness of Punjab agriculture, there is need for reducing the costs of production with proper management of resources and improving the marketing facilities. The imposition of levies such as market fee, rural development charges, infrastructure cess, etc. inflate the price of Punjab rice or any other crop artificially by 10-12 per cent. It is a happy augury that the market fee and rural development charges paid on the exported rice are refunded. But lowering or abolishing of other levies and on other crops would reduce the costs, thereby making exports more competitive internationally. This would also discourage imports since reduced levies would mean lower domestic prices vis-a-vis international prices. The only side-effect would be that it will further squeeze the resources of Punjab economy, which is passing through a severe resource crunch. But its benefits in terms of increased demand for Punjab foodgrains might more than compensate the losses. Further, when exports of rice or any other agricultural crop are pushed up because of some fiscal concessions (which do not come within the purview of WTO), the state government has the legitimate right to seek compensation from the Centre or at least upgrade the marketing and research facilities for agricultural production. JANAK RAJ GUPTA, Punjabi University, Patiala |
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