The Hindu Business Line : `Kerala must include organic farming in export policy'

KERALA is possibly the first Indian State to draw up a draft export policy, but the State must ensure that the measures suggested in the policy are implemented, said Mr K.T. Chacko, Director-General of Foreign Trade.

Speaking at a discussion on Kerala's draft export policy organised by the State's Industries Department, he pointed out that international trade will increasingly be governed by non-tariff measures. Hence, care must be taken to ensure that India's trade policies are able to cope with these issues, he added.

While Kerala's draft export policy does attempt to leverage the State's strengths, several new areas must also be included, he suggested. For instance, organic farming must find a place in Kerala's export policy, Mr Chacko said.

Given Kerala's tradition of farming using fewer chemicals and the growing international demand for organic produce, the State must place special emphasis on organic farming, he added.

The `commercially important person' scheme that forms part of Kerala's draft export policy, if implemented "honestly" will be extremely good for the State's exports, Mr Chacko declared. In fact, the State should look at measures such as better infrastructure that will help exporters reduce their transaction costs, he added.

Similarly, the State could look at setting up a trade information system that provides exporters with high-quality information on foreign markets, said Mr Chacko. Measures to ensure better utilisation of existing capacity in Kerala's seafood sector, is another feature that could be included in the State's export policy he added.

The Foreign Trade Policy announced recently by the Government of India focuses on the issue of encouraging exports from India, he said. Besides outlining measures to increase employment, the new policy offers steps to boost the traditional sector and also touches on agriculture and services, he added.

Mr K. Mohandas, Kerala Principal Secretary- Industries, Mr P.H. Kurian, Managing Director, Kerala State Industrial Development Corporation, Mr R. Harikumar, Member Secretary, Kerala State Export Trade Development Council, Dr G.C. Gopala Pillai, Managing Director, Kerala State Industrial Infrastructure Development Corporation and representatives of various industry organisations were among those who participated in the discussion.

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