World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Australia 86, 87:

Paragraph 17, page 129 of the Secretariat report states that India tends to frequently modify tariffs on food staples, such as wheat, pulses, rice, sugar, and vegetable oils. This variability, as well as the complex process for the notification of tariff rate changes, creates uncertainty and acts as an impediment to trade.

75. 
    Could India explain why it modifies tariff rates on food staples?
    
76. 
    Would a more stable tariff regime provide greater certainty, not only for traders, but also commercial agricultural enterprises in the Indian market?
    

Reply: Production of wheat, rice and other cereals fall in certain years on account of drought and other natural calamities. There are, however, years of much better rainfall resulting in surplus production in the economy. India does modify tariffs to respond to these situations. An inflexible tariff policy is not workable in such a production and demand scenario.

Australia 88:

The Secretariat report notes in paragraph 23, page 131 that India operates a complex system of sanitary import permits, import licenses and restricted ports for the import of certain animal products. We note in particular the Department of Animal Husbandry, Dairy and Fisheries position of setting general import policies for animals and animal products which operate on the basis of the lowest common denominator rather than undertaking a specific country risk assessment for such products. The Department's policies on lamb, goat and pig meat are a good example of this policy in practice.

88. 
    Could India explain whether there are plans to simplify this regime?
    

Reply: Import restrictions are maintained on live animals, meat and other animal products primarily in terms of quarantine certificates. The sanitary import permits (SIP) in no way act as non tariff barrier to trade and in the current regime, application for SIP in case of fish/fishery products are processed on fast track and SIPs are issued within the reasonable time lines.

(b) Measures affecting Exports

Australia 89:

The report notes in paragraph 25, page 131 of the Secretariat report that the 11^th Five Year Plan places 'special emphasis on promoting production and exports of commercial crops and agri based processed products'.

88. 
    In order to achieve an increase in agricultural exports, does India consider that agricultural producers require stable trade policy in addition to initiatives such as the revitalization of plantations, and the provision of tax incentives?