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Government hikes customs duty on 11 agro products 

Ashok B Sharma  
New Delhi, April 7: Just a week after the removal of quantitativerestrictions on imports of 714 items, the Government has increased customsduty on 11 agro products. Addressing the Editors' Conference on Social SectorIssues in the capital on Friday, Union minister for consumer affairs andpublic distribution, Shanta Kumar said this was necessary to protect farmersfrom the possibility of cheap imports.

Import duty has been levied for the first time on imports of rice, maize,sorghum, spelt and millet. A duty of 80 per cent has been levied onrice-in-husk, husked brown rice and broken rice, while 70 per cent importduty has been imposed on semi-milled or wholly-milled rice. Maize seed,grain sorghum, millet and spel will attract a duty of 50 per cent.

Import duty on fresh grapes has been hiked from 25 per cent to 35 per centand that on apples has been hiked from 35 per cent to 50 per cent. Importduty on preparations for infant use in retail packs has been hiked from 15per cent to 35 per cent.

The Governmnet has also relaxed import duty on some agro produces. Importduty on almond-in-shell has been reduced to Rs 35 per kg from Rs 55 per kg.Import duty on shelled almonds has been reduced to Rs 65 per kg from Rs 100per kg. Import duty on grape fruit and prunes has been reduced to 25 percent from 35 per cent.

Shanta Kumar said the imposition of 80 per cent customs duty on rice wasnecessary to check the flow of cheap imports into the country. During thelast four months, 56,000 tonne of rice was imported by private traders. Hestated that the central pool has huge stocks of foodgrains and theGovernment is contemplating on the issue of speedy disposal of these stocks.The carrying cost for this huge inventory is about Rs 18,000 per tonne in ayear.

On April 1, this year the wheat stock in the central pool is 128 lakh tonnesas against the buffer norm of 40 lakh tonnes. The stock of rice in thecentral pool is 152 lakh tonnes against the buffer norm of 11 lakh tonnes.If these stocks are not disposed in a speedy manner, there are chances ofwheat stocks swelling to 28 lakh tonnes by July 1 with new crop arrivals asagainst the buffer norm of 143 lakh tonnes. Similarly, the rice stock willswell to 131 lakh tonnes by July 1 as against the buffer norm of 100 lakhtonnes. The Centre may consider barter system of disposal of these stocks tostate governments.

The minister stated that as per Indo-Nepal deal, already 50,000 tonnes ofwheat was exported to that country.

He expressed grave concern over the leakages of foodgrains earmarked for PDSto open market. The leakage in case of wheat is 36 per cent, in case of riceit is 31 per cent, in case of sugar, it is 23 per cent and in case of edibleoil it is 55 per cent. This leakage has caused an annual diversion of Rs3,000 crore subsidy earmarked for the `poor'. He stated that there are about1.75 lakh bogus ration cardholders in the country.

With a view to check diversion of foodgrains from PDS, Kumar said that hisministry has suggested social auditing of 4.55 lakh fair price shops byabout 2 lakh panchayat samities. District authorities should intimate theallocations of foodgrains to the panchayats and put the allocation figureson NICnet. The fair price shop should display the stocks and intimate thebalance of stocks to the panchayats. Where there is no elected panchayats,the village vigilance committee should take up the job.

Meanwhile, the government has communicated to the Malaysian minister forprimary industries, Ling Keng Yaik on the later's visit to Delhi that Indiawill not alter the differential import duty structure for crude palm oil.

At present, crude palm oil imported by vanaspati industry attracts a duty ofonly 16 per cent whilst the same when imported by refined oil manufacturersattract a duty of 44.02 per cent.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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