Addressing the economic editors' conference in Capital on Wednesday, the minister stated that a Japanese company has recently offered to cultivate lady's finger (vindis) on a 4000 acre land in India for exports. Another party from Japan has offered to cultivate super grade paddy on one lakh hectre land for exports. Mynamar on the other hand is inviting Indian farmers to cultivate pulses in their country. The consolidation of land holdings and provisions for leasing in and leasing out of land will be introduced soon to take care of such developing situations.

In such an emerging situation, it is necessary to remove various restrictions on agricultural produces. There should also be free movement of agricultural produces. This would go a long way in meeting the country's commitment under the WTO, hesaid.

Sompal said that while removing several restrictions on agricultural produces it is necessary to create conditions for ensuring their competitiveness in the global market. It is for this reason, the government has decided to develop crop specific strategies. Recently the government has decided to allow exports of wheat products subject to some quantitative restrictions. The government has also decided to allow free exports of skimmed milk powder and ghee and import of rapeseed will be placed under open general licence. Earlier the government had decided to allow import of split soyabean and sunflower under OGL.

International futures trading in castor oil will soon start in Mumbai. Domestic futures in cotton, soyabean and other edible oils will be allowed. The State Trading Corporation (STC) has been authorised to import other edible oils apart from palmolein to tide over the supply crisis in the country.

The minister stated that while allowing free exports of skimmed milk powder, new markets hasalready been identified in the Middle East. He said that special care will be given for lichhi varieties grown in Bihar so that these products can find good export markets abroad. So also is the case with mango and pomegranate varieties grown in Maharashtra.

Sompal stated that the new agriculture policy will take care to develop adequate infrastructure facilities in rural areas particularly rural marketing, warehousing facilities, cold chains and refrigerated transport facilities.

He said that he would like to extend all facilities enjoyed by industry to agriculture without giving it a status of industry. If agriculture is given the status of industry, then the question of imposition of income tax will arise. Regarding subsidised or free distribution of power to agriculture as against distribution of power to industry at commercial rates, the minister stated that only 26 per cent of power is distributed in rural areas. If power will be distributed in rural areas at par with the urban areas, he wasprepared to concede the claim for equalisation of tariff between the two sectors.

The minister was of the view that the growers should receive remunerative prices for as many crops as possible. The Commission for Agricultural Costs and Prices (CACP) will be restructured to effect changes in its mechanism and operation. The CACP just provided the lowest ebb of return for the farmers in specific crops as per laid down procedures. It was for this reason the government while accepting the recommendations of CACP has to modify it by way of introducing bonus or raising the support prices.

The minister stated that the new agriculture policy will take care to optimise the use of land, water and other genetic resources. Many domestic breeds of cattle will be revitalised for effective production of milk. Sixty-five per cent of the rainfed areas in the country and 80 per cent of the unutilised areas will be put to more productive agricultural use. The scarcity of capital flow in agriculture will be mitigated bywith the introduction of a modified comprehensive crop insurance scheme covering all crops, simplifying credit delivery procedures and revitalising the cooperatives.