The state agriculture minister Radhakrishna Vikhe-Patil submitted an exhaustive report to the union commerce minister Ramkrishna Hegde highlighting various impediments in attracting the agro industries to the state. The report, prepared by a committee headed by the state agriculture commissioner SK Goyal, coincides with `Agro-Advantage Maharashtra' convention and exhibition to be held between November 6 and 9 in Mumbai.

It is a known fact that for all agro products which are being exported, the basic cost of agro produce is just 15 per cent while remaining 85 per cent goes towards package, transportation and related activities. However, fluctuation of 10 to 15 per cent in foreign currency or the market price in the world market makes it very difficult for agro industries to export and cope with the situation as there are no subsidies provided for it. Thus, the need for a setting up of a stabilisation fund.

For the promotion of agro exports in a big way, the state government has demanded that the commercial banks should not charge more that 10 per cent of rate of interest while the refinance should be provided by Nabard at the rate of 7 per cent. The government has called upon the ministry of finance to approach Nabard and RBI to reassess the agro industrial production during natural calamity and allow them to reschedule the loans.

Maharashtra government wants that the agriculture should include all kinds of floriculture and horticulture so that the produce from such activities do not attract provisions of Income-tax Act. In view of rainfed agriculture, the government has called upon the ministry of exports to increase minimum period of export commitment upto 10 years and include the present level of export for promotion of total commitments for export to be made by the agro unit to be assisted by the Export Credit Guarantee Corporation.

On import of insecticides and pesticides, the state government has said that there was no harm to allow import on open general licence if such insecticides were being used regularly in Europe and American countries where the pollution standards were much more stringent. "Moreover, if imports are permitted in similar agro climatic parameters like Africa and Latin America which have been importing such insecticides for years, there should not be any objection to allow import of such insecticides," the government added.

The government has called upon the ministry of exports to have relook at the import duty of 35 per cent, Modvat at the rate of 18 per cent, special duty of 4 per cent and excise duty of 8 per cent imposed on insecticides.

On exports of seeds, the state government said that the procedure of plant quarantine be made liberal and a special package scheme of incentives for agro exporters be declared as the import duty charged on progressive agriculture machinery create problems to conduct modernisation by these units to meet export standard.

The government has called for a joint policy statement on manufacturing of liquor on the basis of agro produce. The state government has already declared a policy allowing agro industrialists to produce liquor out of any agricultural produce. If a unit has been set up in India to make champagne for export purposes, when the market is down abroad, the former may be allowed to sell it fully in the local market.