Criteria for Imposing or Lifting Ban on Export/Import of Agricultural Products

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.

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 and Export permit) 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.

This information was given by the Minister of Commerce and Industry, Piyush Goyal, in a written reply in the Rajya Sabha today.