The Hindu Business Line : Nigerseed exports to US seen down on `irrational' Exim policy

THE country may lose out market share of nigerseed exports to the US in the next few years due to the `irrational' export policy, according to the Indian Oil and Produce Exporters' Association (IOPEA).

At the time when export policy for most agricultural produces has been liberalised; exports of nigerseed — a minor oilseed — are being permitted under restricted list of the Exim policy 2002-2007, the association said.

Under the present export policy, the Tribal Co-operative Marketing Development Federation of India Ltd (Trifed) is recognised as the main canalising agency with other co-operatives Nafed, NDDB, KAPAC (Karnataka State Agricultural Produce Processing and Export Corporation Ltd), and M.P. oil Federation as associate shippers. Private trade is permitted to export subject to payment of a service charge i.e. 5 per cent to associate shippers.

Exports of nigerseed to the US were around 9,475 tonnes in calendar year 2001 as compared to 19,775 tonnes in 2000, as per figure available from the US Trade Department.

As a result, India's share to the US market has declined from 61 per cent to 36 per cent. However, exports from India in recent years stand at 16,157 tonnes for 1999-2000, as per DGCIS figures.

``If the situation is allowed to continue as this, India may lose our existence from the world nigerseed market in the next few years,'' Mr Kishore Bheda, Chairman of the Indian Oil and Produce Exporters' Association (IOPEA), said.

``India has lost large part of market share to competing origins such as Myanmar and Ethiopia,'' he said.

In 2001, exports from Myanmar and Ethiopia increased at 15,313 tonnes from 10,281 tonnes in 2000, indicating a sharp rise in market share from 32 per cent to 58 per cent.

Nigerseed is exported to the US, Europe and Far East destinations as bird feed.

Total world trade is over 55,00 tonnes with the US being the largest buyer account for about 30,000 tonnes.

``Minimum Export Price (MEP) is set so high at times compared with competing origins' prices that it virtually rules out any business from India,'' Mr Bheda said.

``Service charge of 5 per cent is also highly detrimental to our export efforts.''

``Nigerseed is one of the few oilseeds for which indigenous price has always ruled above MSP. Obviously, it defies the logic of remunerative price to growers,'' Mr Sanjay Shah, Vice-President, Bombay Commodity Exchange, said.

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