Sunday, 10 June 2018

REASONABLE RESTRICTIONS ON EXPORT OF RAW AGRICULTURAL PRODUCTS AND OTHER GOODS/THINGS COULD DEVELOP INDIGENOUS INDUTRIES, CREATE EMPLOYMENT AND BRING PROSPERITY TO INDIA



Malabar, which means a mountainous country in Persian language, (Chera Empire, presently state of Kerala in south India,) was a major spice exporter as early as 3000 BCE, according to Sumerian records. Its fame as “the land of spices” attracted ancient Babylonians, Assyrians and Egyptians to the Malabar Coast in the 3rd and 2nd millennia BCE. Arabs and Phoenicians were also successful in establishing their prominence in the Kerala trade during this early period. Jewish connection with Kerala started as early as 573 BCE. Arabs also had trade links with Kerala, possibly started before the 4th century BCE, as Herodotus (484–413 BCE) noted that goods brought by Arabs from Kerala were sold to the Jews at Eden Port.  Greeks, Romans and Chinese too were among the foreigners who had contacts with the Malabar Coast.

The Greek book ‘Periplus’ lists the goods which were exported from Muzuris, (Kodungallur.) The export items were pepper, pearl, ivory, nice cloth (Putt,) Indian spikenard or ‘Jadamanchy,’ (Nardostachys jatamansi) from the banks of Ganges, areca-nut, various precious stones (Diamond) and shell of tortoise from Tamil Islands. That was a golden era and the glory and splendour of Malabar (Kerala) was beyond imagination.

Spices, drugs, perfumes, precious stones and valuable woods from the Orient passed through Roman cities to markets further west.  Julius Caesar, the Roman emperor, presented a pearl worth 48,457 Varahan to his friend Brutus’s mother, Survelia. The value of the pearl on Cleopatra’s (the Queen of Egypt) ear ring was worth 161458 Varahan. The Kings of Bible mentions,  “In BC 1000,   during the reign of  King  of Israel, Solomon the great, sent his men in Phoenician ships from Cyden and Tyre every three years and collected gold, silver, elephant tusk, peacock, monkey and sandal wood from Malabar (Kerala) forest and took it through Muzuris (Kodungallur) Port.” “The doors of the tower gate in Cartage town were made of Sandal wood brought from Malabar,” says Mester Bossarthsmith, a historian. It is evidenced by the discovery of teak in the ruins of Ur. The magnificent teak of the Malabar (Kerala) forest appears to have been used for the manufacture of ships that fought in the battle of Trafalgar and brought victory to Nelson. “In olden days foreigners especially Italians bought pearls from this country, they say River Periyar is one of the places where it is available,” (See Kautilya’s "Arthasastra, 4th century A.D.) The spices, valuable timber and other resources attracted the Jews, the Arabs and later the Portuguese, the Dutch and the English to the Malabar Coast.

     At present India export agricultural produce like Raw Indian Basmati, Raw Rice, Sugar, Wheat, and semi-processed and processed ready-to-eat products (to the Western countries and Gulf Region); Sesame and Niger seeds; Spices including pepper, chilli, cardamom, ginger, clove, cinnamon, mint, cumin, nutmug, turmeric; garlic, oregano, basil and myrr & frankinsense; Fruits, and Vegetables; Cashew; Oil cake/meals, Coir, Coir-products; Tobacco; Beverages like tea and coffee; and Marine Products (shrimps, prawns, & crabs) to USA; Meat & Meat products, Boneless Meat Buffalo; Minerals include iron ore (from Kundremukh in Karnataka to Japan,) Iron and Steel (to Malasia); Coal (from Bihar & Jharkund); and Other goods/things like automobiles, chemicals, IT, pharmaceuticals, textiles (polyester & cotton to UAE); Garments (to Belgium,) Cotton items (to Japan); Cushion (to Myanmar); Automobiles - Tractor parts (to Turkey); Cars and its spares; ports, aviation - Air-craft parts, leather, tourism and hospitality, wellness, railways.

Though India is a major exporter of agricultural and allied products, we still import - cereals, pulses, sugar, milk and milk products, and chicken meat etc. The Green Revolution in India was a success but it failed to extend the concept of high yield value seeds to all crops and all regions. In terms of crops, it is still largely confined to food grains like wheat and paddy only, not to all kinds of agricultural produce. It shall be extended to other cereals, pulses to make India self-sufficient. Similarly India tops in the number of cattle wealth but in spite of the White Revolution the milk we derived is not sufficient for our domestic use. Therefore we have to focus our attention to improve the cattle breed to make India self-sufficient in milk and milk products. Nutritious food is vital for the health of the population.

     India has huge potential for export of innovative, value-added spice products. India, which is the largest producer, consumer, and exporter of spices, has 48% share in global market (volume-wise,) according to A.B. Rema Shree, director, research and development, Spices Board. Raw spices and value-added products are exported now. Under the value-added segment, entrepreneurs can use the technology available, produce and export innovative products such as spice-flavoured chocolates, and bathing bars, oils, and creams with spice fragrance, she said at a meeting organized recently by United Planters’ Association of Southern India. The Spices Board is focusing on high-end value addition. In 2016-17, domestic market for spices was 6.13 million tonnes and exports, which include extracts, oils, blends, and powders, were 0.95 million tonnes, with exports to about 150 destinations. Chilli is one of the main export items. The other major spices exported are mint, cumin, spice oils, and value-added products. There are about 6,000 registered exporters of which manufacturer-exporters are 697. Ms. Rema Shree said the Spices Board promotes formation of spice producer societies for value addition and direct marketing. There are 47 societies and 10 spice development agencies. Further, there are six spice parks in the country and two more have been developed. These parks have common facilities for basic processing facilities. She told that this was an ongoing project. The infrastructure at the parks was provided by the board and it was developed under the ASIDE Scheme of the Union government for producers and entrepreneurs to process spices add value, and export. E-Spice Bazaar, a web portal designed in association with Department of Electronics and Information Technology, ensures total traceability of farms and strengthens the farmers to negotiate with traders. So far, more than 40,000 chilli farmers and 11, 000 turmeric farmers have been covered in four districts of Andhra Pradesh and Telangana.

     Market intelligence and creating awareness in international market about quality of products need to be strengthened to boost agricultural exports. We should also collect data from other countries, which are exporting these goods, their quality, quantity, and make bilateral or multilateral agreements for trade and commerce.

     It is significant to know the uses and purposes of the exported goods or things and the final value-added product, which ultimately reach the consumer like medicines, perfumes, cosmetics manufactured from spices; semi-processed or processed articles (ready to eat) from varied grains and steel manufactured from iron ore and the like.

          It is the duty of the government and its agencies to give technical know-how, assistance, training facilities to competent persons. The entrepreneurs may also be given encouragement including incentives like reduced excise duty and GST and other tax exemptions, subsidies on capital investment, other allowances given to small scale industries and other facilities. They may be allowed to carry on business with or without collaboration of foreign agencies to make the value-added final products as per requirements of the ultimate consumer. Recognition to the establishment too is vital. Quality control is another significant factor, which is an aggregate of activities (such as design, analysis and inspection for defects) designed to ensure adequate quality especially in manufactured products. It is important to market the products at competitive price without bargaining on quality and quantity of the products.

The Prime Minister of India, Shri Narendra Modi launched “Make in India” initiative on 25th September 2014 from Vigyan Bhawan in New Delhi. The Government is committed to chart out a new path wherein business entities are extended red carpet welcome in a spirit of active cooperation.

     India’s agri-exports face certain constraints that arise from conflicting domestic policies relating to production, storage, transport, distribution, food security, pricing concerns etc. Unwillingness to decide on basic minimum quantities for export makes Indian supply sources unreliable. Higher domestic prices in comparison to international prices of products of bulk exports like sugar, wheat, rice etc. make our exports commercially less competitive.

     Reasonable restrictions could be imposed on export of raw agricultural products and other goods/things and services except in the form of final products made/manufactured as per requirements of the ultimate consumer. This could develop indigenous industries, create employment and bring prosperity to India.

 

Excerpts from
NEED OF THE HOUR
By
Joseph J. Thayamkeril,
Lawyer, Cochin
josephjthayamkeril.blogspot.com
josephjthayamkeril.google.com

1 comment:

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