Voluntary Report - public distribution

**Date:** 4/30/2004

**GAIN Report Number:** IN4041

IN4041

**India**

**Agricultural Situation**

**Weekly Highlights & Hot Bites, #16**

**2004**

**Approved by:**

![](media/image1.wmf)Chad R. Russell

U.S. Embassy, FASNEWDELHI

**Prepared by:**

A. Govindan, V. Shunmugam

**Report Highlights:**

\*India and Brazil to draw up farm tariff formula\*, \*DGFT for bringing
more items under mandatory quality control\*, \*Panel for clipping GEAC
wings\*, \*Insect-resistant Bt cotton may be released soon\*.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

New Delhi \[IN1\]

\[IN\]

Welcome to Hot Bites from India, a weekly summary of issues of interest
to the U.S. agricultural community. The report includes information that
has been garnered during travel within India, reported in the local
media, or offered by host country officials and agricultural analysts.
Press articles are included in this report. Significant issues will be
expanded upon in subsequent reports from this office.

DISCLAIMER: Any press summary contained herein does NOT reflect USDA's,
the U.S. Embassy's, or any other U.S. Government agency's point of view
or official policy.

**INDIA AND BRAZIL TO DRAW UP FARM TARIFF FORMULA**

India and Brazil have opposed the tariff reduction formula proposed by
the U.S. and European Union at the WTO, with the just concluded
agriculture negotiations ending without making any headway. The two
developing countries indicated that they were working on an alternative
approach to reduce tariffs, which is likely to draw from the elements of
the formula floated by Stuart Harbinson, former Chairman of the
Agriculture Committee, WTO. (Source: Business Standard, 04/26/04)

# DGFT FOR BRINGING MORE ITEMS UNDER MANDATORY QUALITY CONTROL

The Indian industry and other stakeholders should insist and work
towards getting more items under the 'mandatory quality control norm',
according to the Director General of Foreign Trade, Mr. L. Mansingh. "We
have to think consumer interest, especially when there are no
quantitative restrictions. The mandatory quality control is only there
for 118 items. India is wide open for flood of substandard products," he
said at a seminar "Exporting Successfully" organized by the
Confederation of Indian Industry. "We have been liberalizing to a large
extent. But you must remember that more liberalization is possible only
when you play by the rules of the game. There is a limit to which we can
accept liberalization, beyond which we may have to step in," he added.
(Source: Business Line, 04/23/04)

# PANEL FOR CLIPPING GEAC WINGS

The MS Swaminathan Committee on applications of biotechnology in
agriculture has sought to reduce the powers of the existing regulatory
authority, Genetic Engineering Approval Committee (GEAC). It has
suggested that pending the setting up of an autonomous Agricultural
Biotechnology Regulatory Authority, the release of transgenic crops for
commercial cultivation should be done by the Indian Council of
Agricultural Research and the Agriculture Ministry. The panel has
limited the powers of the GEAC to "only environmental clearance."
Regarding selection of crops for developing transgenics, the panel
report said, "the alternatives available for meeting the food and
nutritional needs should be viewed comprehensively" before resorting to
transgenics. The panel also suggested labeling genetically modified (GM)
products, setting up Codex norms for GM food, and protection of organic
farming zones and agro-biodiversity sanctuaries from the effects of
cross-pollination of GM crops. With a view to hasten the process of
clearance of GM crops, the panel report suggests "once the
extant/transgene has been declared bio-safe, its derivatives need not
always be evaluated for bio-safety again." (Source: Financial Express,
04/28/04)

*Post Comment*: The Swaminathan Committee report will be presented to
the cabinet for approval once a new government is established.

## INSECT-RESISTANT BT COTTON MAY BE RELEASED SOON

Dr. S.R. Rao, Director, Department of Biotechnology (DBT), while
addressing a seminar, revealed that the final tests for releasing
insect-resistant Bt cotton varieties in the northern region of the
country are progressing. He said the research work on genetically
modified plants, which is going on in more than 200 laboratories, is
more precise, efficient, and can be easily monitored. Dr. Rao added that
the developments in the field of genetically modified plants are
significant as agriculture is not only the backbone of the economy, but
it is also a way of life, a tradition, and an anchor of overall
livelihood opportunity for about 700 million people. Other medical
professionals who attended the seminar also claimed that the application
of biotechnology in agriculture would potentially improve food security
by raising crop tolerance against biotic and abiotic stresses. (Source:
Tribune 4/23/04)

# RECENT REPORTS SUBMITTED BY FAS/NEW DELHI

  ----------- --------------------------------------- -------------------
  **REPORT    **SUBJECT**                             **DATE SUBMITTED**
  \#**                                                

  IN4039      Weekly Highlights & Hot Bites, #15      04/23/04

  BG4003      Bangladesh -- Oilseeds & Products       04/30/04
              Annual                                  

  IN4040      India -- Tobacco & Products Annual      04/30/04
  ----------- --------------------------------------- -------------------

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