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Import quotas on 12 farm goods may go

Monica Gupta in New Delhi | August 23, 2004 09:19 IST

The government is planning to lift quantitative restrictions on the import of 12 farm products, including seeds, plants and roots, as part of its initiative to free the import of 32 items. It is set to announce the Foreign Trade policy on August 31.

The government is also contemplating a ban on the import of certain products on which quantitative restrictions had been lifted earlier or are on the list of items under free trade agreements.

For instance, the import of copper from Sri Lanka is under scrutiny following complaints from the domestic industry. The industry feels that copper is being imported in the form of wires and later melted and converted into bars.

The ministry of mines had approached the commerce ministry for the imposition of restrictions, and the issue was taken up with Sri Lankan officials during a review last week.

The farm items on which quantitative restrictions are to be removed include mushroom, cloves, sugar beet, onion seeds, jute seeds, clove seeds, tomato seeds, tamarind seeds, cabbage seeds, cauliflower seeds and pomegranate seeds.

The government had lifted quantitative restrictions on 715 items in 2001, and on 714 items in 2000. However, under the World Trade Organisation provisions, it has the right to maintain restrictions on certain products, like farm goods, and those pertaining to the small scale and strategic sectors.

Under Articles XX and XXI of the General Agreement on Trade and Tariffs, countries can maintain quantitative restrictions for safety, security, sovereignty and environmental concerns.

Although quantitative restrictions were retained for these reasons on over 600 items, the government has gradually pruned the list.

At present, there are around 500 items on which restrictions are maintained under Article XX and XXI.



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