Thiruvananthapuram, Aug 22 (Inditop.com) Minister for Overseas Indian Affairs Vayalar Ravi Saturday charged Kerala’s ruling Communist Party of India-Marxist (CPI-M) with misleading farmers on the Asean Free Trade Agreement (FTA) signed by India earlier this month.
Addressing reporters here, Ravi said the CPI-M is trying to create a scare among the farmers that the FTA would be detrimental to their interests.
“This is far from the truth, because in today’s world none lives in isolation and the farmers can look forward to a positive future because of the agreement. This pact would enable our farmers to compete with the rest of the world and the central government would help them through proper policies and support,” said Ravi.
Ravi along with Defence Minister A.K. Antony is in the committee which would look into all the aspects of the FTA once it becomes a reality Jan 1 next year.
“The committee would act as a watch dog and would look into all aspects post-agreement and would continuously be looking after the interests of the farmers. Already the centre has announced a special package of Rs.250 crore for opening up of the locked tea estates and sanctioned Rs.120 crore for improving the production of pepper. Similarly a benchmark price for coconuts has also been announced,” said Ravi.
The FTA was signed Aug 13 in Bangkok by Commerce Minister Anand Sharma and his counterparts in the ASEAN countries.
Critics of the pact say it will affect farmers as import tariff on many products will be eliminated.
The FTA has 489 items in the negative list of which 303 items are agriculture products. It includes pepper, coffee and tea.
According to the agreement, India will have the right to decide the tariff on the items in the negative list for 10 years.
Once the agreement is implemented, the present 70 percent import duty on pepper will come down by 2 percent every year.
“Vietnam is one of the biggest exporters of pepper and since they have not signed the FTA, pepper from that country will not arrive in the country. Moreover the total annual production of pepper in the state is 50,000 tonnes, of which we export 35,000 tonnes,” said Ravi.
Likewise, the import duty on tea and coffee, which is now 80 percent, would come down to 45 percent and that on rubber would come down to 50 percent after 10 years, he added.
“The biggest producer of tea in the country are states like West Bengal and those in the northeast. In Bengal, the CPI-M has no problem. For rubber, the centre will soon come with a Rubber Act, which would protect the small and marginal rubber farmers in the state,” added Ravi.
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