Mumbai, Nov 27: The All-India Association of Industries (AIAI) has appealed to the centre to review quantitative restrictions, canalisation and the Land Ceiling Act to give a boost to agro exports.

In a memorandum submitted to the commerce ministry, AIAI has called for infrastructure support like cold chains at the farm level, specialised transport for perishables, mechanised cargo-handling facilities, congestion-free ports and well-equipped airports.

Growers and manufacturers should be given incentives to switch over to export-oriented production. A delegation led by AIAI president, Vijay Kalantri, will meet union commerce minister BB Ramaiah here on Saturday to press for its demands. AIAI has stressed the need for amendment to the Land Ceiling Act to facilitate captive farming and private sector involvement in the development of land and field infrastructure. It has demanded the setting up of a fully equipped quality rating agency with the network of quality labs for quality upgradation and issuing quality ratings to exporters.

Kalantri has demanded simplification of duty exemption scheme including a pass book scheme and draw back scheme and the lifting of quantitative ceiling in certain class of consumer goods.

On the industrial policy and export promotion linkages, AIAI said the policy framework for foreign direct investment should be made more conducive to export-oriented investments.It added that there was a lack of thrust for FDI in export-related activities in the present policies.

Kalantri said all items restricted for production in the small scale sector should be dereserved and the decision relating to the size of the unit and the level of investments be left to entrepreneurs, investors and financiers.

On export marketing and information networking, AIAI has stressed the need for strengthening the data base relating to the profiles and strength of domestic industries, exporters and potential exporters. The government should set up a venture capital fund to cover the products which are technology-intensive and will create a new niche for exports. On export finance, AIAI has demanded that commercial banks be urged to increase the share of export credit to net bank credit from existing 12 per cent to 17 per cent gradually till the end of the Ninth Plan. A special scheme to provide pre-shipment credit against warehouse receipt should be considered to improve competitiveness of agricultural exports and cross-border financing facility. Flexibility to raise loans/equity abroad should be introduced.

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