siliconindia | | February 20209There is still a need for increased investment in the agricultural sector, and a lot more needs to be done to support farmers financiallyment's policies to protect the land and water resources in order to promote sustainable growth are encouraging agricultural development.Elaborate on the customs tariffs on the import of agriculture products. How are these decided, and who concludes on it?The custom tariffs on the import of agricultural goods are an example of indirect tax that is levied upon the agricul-tural goods when they are bought into India from a foreign country. These taxes are calculated by adding-up Basic Customs Duty and Customs Handling Fee. They are deter-mined by the Central Board of Excise and Customs, which is a part of the Ministry of Finance, Government of India. Are there anyways of using Non-tariff measures on imports of agricultural products?Yes, there are various non-tariffs measures that can be used to regulate the imports of agricultural products. These in-clude reducing taxes on domestic agricultural produce, providing farmers with agricultural tools & equipment at reduced prices so that they incur low costs in growing crops and can hence sell their produce at affordable rates, and in-troducing measures to ensure that good quality crops can be produced in our country so that our crops can compete with the exported agricultural produce.Highlight the country's yield export policies. Are taxes or subsidies on export of agricultural products permitted?India's export yield policy is mainly trying to focus upon diversifying our export basket, in doubling India's share in world agricultural exports, in following a holistic approach to boost exports, in marketing & promoting `brand India', towards attracting private investments into producing & processing, and in following a farmer-centric approach to ensure increased income for farmers.Yes, taxes and subsidies on exports of agricultural prod-ucts are permitted by the government in order to encour-age the exports of Indian goods in the international mar-kets. The government ensures this by offering tax relief for exporters.Brief us on the Agri subsidies and other facilities availed by farmers.The agricultural subsidies and other farmer facilities that are availed by farmers in India include loans granted to farmers at lower or no interest rates, Minimum Support Prices of-fered by the government on agricultural produce, and sub-sidy on fertilizers, irrigation, power, and seeds purchased by farmers. Will India continue to have adequate pol-icy space to raise tariffs on agricultural products?The government holds the power to decide tariffs on the export & import of goods in a country to protect its do-mestic markets from being flooded by international goods. And India has been fighting hard to keep this mandate with itself. Recently, India decided to opt-out of RCEP (Region-al Comprehensive Economic Partnership) because that agreement would have put the Indian domestic industry and agriculture at risk by forming a free trade area with 15 countries. Hence, this decision by the Indian government is in spirit with the opinion that India will continue to hold power on deciding policy space.Are developed countries allowed to shield some of their agricultural products from full tax on imports and exports?A particular country being allowed to shield its agricultural produce from full tax on import and export tariff depends upon its own tariff policies and the trade pacts that it has signed with other neighbouring countries. If a country in question has entered into a free trade agreement with other countries, then the power to decide its export and import rates will depend upon what has been agreed upon in the trade agreement. As an expert, what is your insight on the measures to be taken to resolve the snags that are hindering agriculture and farmer's growth?In order to promote agricultural and farmer's growth in India, the steps that should be taken include ­ · Domestic production of crops should be encouraged.· Sustainable development of agriculture should be ensured where resources like land and water are used feasibly.· Production of high-quality crops should be encouraged.· Exports should be increased.· Investment in the agricultural sector should be encouraged.
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