Voluntary Report - public distribution

**Date:** 10/28/2005

**GAIN Report Number:** IN5123

IN5123

**India**

**Agricultural Situation**

**Weekly Highlights & Hot Bites, #42**

**2005**

**Approved by:**

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

U.S. Embassy, New Delhi

**Prepared by:**

Michael Riedel, A. Govindan, Santosh Kr. Singh, V. Shunmugam

**Report Highlights:**

\*End impasse at WTO, says India\*, \*India criticizes US and EU WTO
offers on agricultural subsidies\*, \*Prime Minister fashions free trade
with ASEAN and neighbors\*, \*\$1.7 billion lined up for over 200
hotels\*, \*Vegetable oil tariff values raised by \$10 to \$24 per
ton\*.

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.

**END IMPASSE AT WTO, SAYS INDIA**

India asked the developed nations to shed their "fortress mentality" in
order to break the impasse in the crucial WTO agriculture talks. "The
developed countries still have a fortress mentality. They have to give
it up. The two hands \[developed and developing nations\] must join so
that the Hong Kong WTO Ministerial deadline is not missed," Finance
Minister Chidambaram said. Over the last few weeks, before any decision
is made regarding the formula for market access in agriculture, India
has pushed to finalize a proposal on the selection and treatment of
"special products" pertaining to the livelihood and food security of
developing nations. Commerce Minister Kamal Nath asserted that no market
access formula in agriculture could be agreed upon without such an
agreement. (Source: Business Standard, 10/25/05)

## INDIA CRITICIZES US AND EU WTO OFFERS ON AGRICULTURAL SUBSIDIES

G.K. Pillai, Additional Secretary in the Indian Commerce Ministry,
criticized the US and the EU for their insufficient proposals to reduce
agricultural subsidies. Referring specifically to the US offer, he
indicated that the 60 percent proposed cut from scheduled rates may even
result in an increase in subsidies to the extent of \$2 billion. He was
speaking to the \"South Asia Conference on Trade and Development \--
Run-Up to Hong Kong,\" organized by the Center for Trade and
Development. (Source: The Financial Express, 10/28/05)

**PRIME MINISTER FASHIONS FREE TRADE WITH ASEAN AND NEIGHBORS**

Prime Minister Manmohan Singh rolled out a roadmap that envisages free
trade with all neighboring countries, ASEAN, and the Gulf states by
2006. If the proposed regional pacts come into effect, India would have
established free trade agreements with countries accounting for nearly
one-third of the world's population, most of them high growth economies.
India is likely to back Afghanistan's entry into the SAARC (South Asian
Association for Regional Cooperation) Free Trade Agreement (SAFTA).
These steps are aimed at enhancing India's economic engagement with the
global community, even if the ongoing WTO talks do not result in any
major improvement in market access. (Source: Economic Times, 10/27/05)

**\$1.7 BILLION LINED UP FOR OVER 200 HOTELS**

There are over 200 star-category hotels, with an investment of about
\$1.7 billion, planned in India over in the next three to four years.
This will add 26,000-30,000 rooms to the existing capacity. Promising
demand conditions due to the recent boost in tourism have radically
changed the way most financial institutions and foreign investors look
at the Indian hotel industry. (Source: Economic Times, 10/23/05)

# VEGETABLE OIL TARIFF VALUES RAISED BY \$10 TO \$24 PER TON

Effective October 15, 2005, the Finance Ministry raised tariff values
for edible oils by \$10 to \$24 per ton, keeping pace with international
prices (see -
www.cbec.gov.in/cae/customs/cs-act/notifications/notfns-2k5/csnt94-2k5.htm).
While the increase is \$10 per ton for crude degummed soybean oil, the
increase for the palm group of oils is between \$16 to \$24 per ton.
This is the third revision within the last month. (Source: Business
Line, 10/16/05)

# RECENT REPORTS SUBMITTED BY FAS/NEW DELHI

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

  IN5122      Weekly Highlights & Hot Bites, #41      10/21/05
  ----------- --------------------------------------- -------------------

**WE ARE ON THE NET**

We are available at
[www.usembassy.state.gov/posts/in1/wwwh43.html]{.underline} or visit our
headquarter's home page at [www.fas.usda.gov]{.underline} for a complete
selection of FAS worldwide agricultural reporting.

**FAS/NEWDELHI EMAIL**

To reach FAS/New Delhi, email us at [Agnewdelhi@usda.gov]{.underline}.