Finance Minister Nirmala Sitharaman Meets Farmers to Discuss Lifting Export Bans
New Delhi, June 21: Finance Minister Nirmala Sitharaman held a pre-budget meeting with representatives from farmer associations and agricultural economists to discuss lifting export bans on agricultural products. The meeting was also attended by Union Minister of State for Finance Pankaj Chaudhary, the Finance Secretary, and senior officials of the Agriculture Ministry.
During the two-hour consultation, MJ Khan, Chairman of the Indian Chambers of Food and Agriculture, emphasized the need to lift export bans. He stated, “Our agri-export share is only 2 percent in global agri exports. Due to the ban on some agricultural products, our exports have fallen. India faces a USD 4 billion cut in agricultural exports due to trade restrictions on staples like wheat, rice, and sugar. We need to avoid knee-jerk reactions and focus on creating export hubs.”
Agricultural economist and distinguished professor at ICRIER Ashok Gulati highlighted the surplus in rice stocks held by the Food Corporation of India (FCI) and suggested prioritizing the opening up of rice exports. He also stressed the need to lift the ban on onion exports immediately.
Badri Narain Chaudhary, President of the Bhartiya Kisan Sangh, called for a long-term agricultural policy and improved data collection in the agriculture sector. He said, “We don’t have any agriculture policy. The government should start collecting data on the agriculture sector.”
According to the Agricultural and Processed Food Products Export Development Authority (APEDA), there has been a noteworthy 9 percent decline in exports under its ambit. The export bans undertaken by the Government of India aim to balance consumer affordability and support the agricultural industry amidst rising retail prices.
In July 2023, exports of all non-basmati white rice were prohibited to address concerns related to rising prices. Additionally, a 20 percent duty on parboiled rice exports was introduced, initially until October 2023, and later extended to March 2024. These interventions were designed to strike a balance between ensuring affordability for consumers and supporting the agricultural industry.