• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Latha Venkatraman

Mumbai , Nov. 20

INDIA accounts for a tiny share of the total US agricultural exports. But with the country gradually opening up imports and lowering tariffs, it will be an explosive market, according to the US Government's Foreign Agricultural Service (FAS).

In 2002, US agricultural exports to India stood at $280 million of which $100 million was cotton, the others being fruits, soya oil and other vegetable oil and food products.

However, the issue of tariffs continues to pose a stumbling block for further flow of imports into the country. "If India increased access to its market for US agricultural goods, it would provide all segments of Indian society greater consumer choice and resultant lower prices,'' Mr Angus Simmons, Consul General, US Consulate, said at the launch of the Fall Festival of US Wines and Food.

India, according to Mr Michael Riedel, Agricultural Attache, FAS, is a significant market all by itself. "As India is poised to be a large economy in the years to come, we are focussing our energies entirely on this market,'' Mr Riedel said.

The Fall Festival is meant to showcase US's offerings in the wine and food market mainly targeting hotels, clubs and restaurants. "Many of these products are in the market - almonds, apples, prunes, pistachios, pears and grapes,'' Mr Riedel said. "We are trying to spread out and broaden our exposure in the Indian market,'' Mr Riedel said.

In terms of tariff, wine attracts a customs duty of 264 per cent. Besides, each of the State Government imposes varying excise duty as well as sales tax. As of now, 13 states do not allow sale of imported wine in India. "The market for imported wine in India is growing at 25 per cent but that is because the base is small,'' Mr Rukn Luthra, Country Manager, South and South East Asia, Ernest & Julio Gallo, US-based winery, said.

Ernest & Julio Gallo is planning to double its business. "We carry out marketing campaigns, hold sales meets with hotels and restaurants to promote our products,'' Mr Luthra said.

According to Mr Sumit Saran of the SCS Group, the opening up of imports of fruit into India has helped in improving the quality of packaging of Indian produce.

Article E-Mail :: Comment :: Syndication

Stories in this Section
NCDEX gets Govt recognition

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line