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FTP Supplement 2006 introduces slew of measures for agri-products

Written by: Staff
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New Delhi, Apr 7 (UNI) To promote employment generation in rural and semi-urban areas, the Government has decided to incentivise the export of village and cottage industry products, under the expanded Vishesh Krishi Upaj Yojana, which has been renamed as Vishesh Krishi and Gram Udyog Yojana.

Keeping in view the objective of Foreign Trade Policy in this regard, Commerce and Industry Minister Kamal Nath today released the annual supplement to the Trade Policy for 2004-09 stressing the need for promoting the use of domestic farm product in agricultural exports.

To take the benefits of foreign trade further to rural areas, the Vishesh Krishi Upaj Yojana has been extended to include village industries products for export benefits.

The Minister said that a built-in incentive has been introduced under Vishesh Krishi and Gram Udyog Yojana for exporters utilising domestic raw material for export production.

In the supplement, he mentioned that it has been decided to incentivise the export of village and cottage industry products by awarding a duty free scrip at the rate of 5 per cent of FOB value under the scheme.

He announced that such exports would now get additional benefits under the renamed scheme at the rate of 1.5 per cent of FOB value of exports compared to those who use imported agricultural inputs who shall get benefits at a reduced rate of 3.5 per cent.

''This will encourage indigenous procurement of inputs for agricultural exports and help the farming community,'' Mr Nath said.

He said that exporters will have the option to avail of the benefits in respect of the same exported products under only one of the three schemes such as Focus Market Scheme, the Focus Product Scheme or the Vishesh Krishi and Gram Udyog Yojana.

Under the focus product scheme, the Trade Policy allows duty credit credit at the rate of 2.5 per cent of the FOB value of exports to 50 per cent of the export turnover of notified products like value added fish and leather products, stationery items, fireworks, sports goods, handloom products bearing handloom mark and handicraft items.

The benefits of the scheme will accrue to exports mwith effect from April 1, 2006.

UNI BBS RA RS1448

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