A stable export policy for agricultural and allied products is on the anvil. Accordingly, for this sector, the requirement of minimum net foreign exchange earning of 20 per cent will be done away with. The threshold limit for EPCG zero duty scheme for agricultural and allied sectors has been brought down from Rs 5 crore to Rs 1 crore.

The threshold limit has been brought down from Rs 20 crore to Rs 1 crore for the food processing sector.

Exports of all oilseeds such as HPS groundnut, seasame seeds, sunflower seeds, mustard seeds when exported for consumption purposes will be made free without any quantitative restrictions or licencing requirements.

Similarly, exports of vegetable oil such as coconut oil, cotton seed oil, cornoil, kardi oil, linseed oil mustard oil, niger seed oil, palm oil, palm kernel oil, rape seed oil, rice bran oil, salad oil, sunflower oil, sesame seed oil, soyabean oil are also being made free of restrictions.

The restriction on export of groundnut oil in consumer packs up to 5 kg has also been removed. However, their export in bulk will continue to be restricted.

Recognising the scope for agro-exports, the Union commerce minister, Ramakrishna Hegde regretted the lack of a stable export policy for agro and allied products. The phenomenon of very low prices at the time of harvest and distress sale of produce was also well known, he pointed out.

He said there was, therefore, need for a long-term stable agricultural export policy to establish the country as a reliable supplier in the global market and to encourage efforts at market development and promotion with an assurance of continuity in supplies.

He said items which are freely allowed to be imported should be free from export restrictions.Besides, in other cases also it was necessary that minimum quantities of agricultural products, processed foods, fruits and vegetables and flowers are permitted for exports irrespective of domestic prices, he noted.

Hegde said extensive consultations have already been initiated in this regard and the government will evolve a stable policy in regard to agricultural exports soon.

The export potential of floriculture and horticulture products was unlimited. The development of these sectors will also provide vast employment in rural areas. Handicraft was also another area which needed attention and appropriate infrastructure has to be provided for their export, he said.

Regarding imports of agricultural products, the amendments to the policy stated that import of living plants, seeds for sowing or plant material shall be made by the Indian Council of Agricultural Research, agricultural universities, botanical and horticulture departments of other universities and state governments without a licence.

Suchimports will be subject to such conditions as may be specified by the Union ministry of agriculture from time to time.

The import of restricted items required by hotels, restaurants will be against a licence granted on the recommendation of the director general, regional director or director of tourism. The import of livestock will be against a licence and on the recommendations of the Union ministry of agriculture. The import of animals, birds and reptiles will be against a licence and on the recommendation of the chief wild life warden of the concerned state.

The import of stallions and broodmares will also be against a licence and on the recommendations of the director, animal husbandry and veterinary services of the concerned state government or the department of animal husbandry and dairying of the central government. Only registered stud farms of three years standing having 1.5 acre land per animal shall be allowed to import stallions and broodmares.