Lok Sabha Question No. 740 (UNSTARRED), answered on 2019-06-26
Subject: Ban on Agricultural Products
Ministry: COMMERCE AND INDUSTRY
Asked by: Bhartruhari Mahtab, Rahul Ramesh Shewale

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 740 TO BE ANSWERED ON  26 th  JUNE, 2019

## BAN ON AGRICULTURAL PRODUCTS

## 740. SHRI BHARTRUHARI MAHTAB: SHRI RAHUL RAMESH SHEWALE:

Will  the  Minister  of COMMERCE & INDUSTRY ( वािण᭔य एवं उ᳒ोग मंᮢी ) be pleased to state:

- (a) the criterion followed/adopted by the Government for imposing/lifting ban on various agricultural products from time to time;
- (b) whether the Government has conducted any study to ascertain the adverse impact on farmers/consumers of such imposing/lifting ban on agricultural products during each of the last three years and the current year and if so, the details thereof;
- (c) whether the Government proposes to formulate a long term consistent and predictable export-import  policy  of  agricultural  products  and  if  so,  the  salient  features  of  such policy; and
- (d) the corrective steps taken by the Government to protect the interests of farmers/consumers  from  the  adverse  impact  of  imposing/lifting  ban  on  agricultural products?

## ANWSER

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## THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

(a) & (b) The export and import policies for agricultural products, which include the decisions on lifting/imposing bans on export/import of individual agricultural products, are framed keeping several factors in mind, such as availability of surplus over the domestic requirements (including the  requirement  of  buffer  stock  and  strategic  reserve,  if  any),  concerns  of  food  security, diplomatic/humanitarian  considerations,  international  demand  and  supply  situation,  price competitiveness, need to balance between remunerative prices to the growers and availability of agricultural products to common man at affordable  prices etc.  During the last three years, no bans have been imposed on export/import of any of the major agricultural products. As such, no study has been conducted in this regard.

- (c) & (d) The Agriculture Export Policy, brought out by the Government in December 2018, aims at a stable trade policy for agricultural products, involving following steps:
- 1)  Providing  assurance  that  the  processed  agricultural  products  and  all  kinds  of  organic products will not be brought under the ambit of any kind of export restriction (viz. Minimum Export Price, Export duty, Export  bans, Export  quota, Export capping, Export permit etc.) even though the primary agricultural product or non-organic agricultural product is brought under some kind of export restrictions.
- 2)  Identification of a few commodities which are essential for food security in consultation with  the  relevant  stakeholders  and  Ministries.    Any  export  restriction  on  such  identified commodities  under  extreme  price  situation  will  be  based  on  decision  of  a  high  level committee. Also, any kind of export prohibitions and restrictions on the identified commodities above would be taken up in a WTO compatible manner.
- 3). Liberalised import of agricultural products for value addition and re-export.

Consequent to the approval of policy, mandate of the Committee of Secretaries on 'Essential commodities' has been expanded to provide recommendation on export restrictions on a few commodities, which are essential for food security, under extreme price situation only.

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