The Hindu Business Line : New rules throw farm imports out of gear

WHILE the whole country has ushered in 2004 with a sense of robust optimism about economic prospects, agriculture commodity importers find themselves in a fix since the beginning of the year over a new set of rules and regulations governing imports of a wide range of agricultural products.

The changes are so sweeping that there is real apprehension of disruption to imports of farm goods. Interestingly, most trade associations and big players in the commodity markets are unaware of the Government's new regulation.

Introduced by the Ministry of Agriculture, the Plant Quarantine (Regulation of Imports into India) Order, 2003, establishes procedures and quarantine requirements for plant, planting materials and various agricultural products when imported into India, both for planting and consumption. The notification, an omnibus document setting out import procedures for various agricultural commodities, contains new declarations and conditions for imports.

It lists plants/planting materials and countries from where imports are prohibited, giving justification; plants/planting materials whose imports are restricted to authorised institutions with additional declarations and special conditions; and plants/planting material permitted for import for planting and consumption with additional declarations and special conditions.

The new set of regulations has thrown the entire import business out of gear, say traders. Many of the conditions are impossible to comply with and reveal a lack of understanding of business procedures on the part of bureaucrats, some have complained. It is also unclear what prompted issue of a new set of procedures even when the existing ones ensured uninterrupted arrival of essential commodities.

The products affected by the notification dated November 18, 2003 (to take effect from January 1, 2004) include grains, oilseeds, fresh fruits and vegetables, nuts, cotton etc for planting and consumption.

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