Web Search www.YaHind.Com INDIAN AGRICULTURE & THE WTO REGIME Archna Sood With over 110 million farmers and workers, Indian agriculture is the largest private sector enterprise contributing to nearly 25 per cent of the country's gross domestic product. The agricultural sector produces over 51 major crops besides providing raw material to Indian agro-based industries. Nearly one-seventh of the country's total export earnings accrue from the agricultural sector. Great resilience has been imparted to the agricultural production in the last few decades. Despite aberrations of weather in some parts of the country, Indian agriculture has acquitted itself admirably in the recent past. India has emerged as the second largest producer of rice, wheat, groundnut, fruit and vegetables in the world. The Government has already taken a bold initiative to launch a regionally differentiated strategy, based on agro-climatic regional planning. This takes into account the agronomic, climatic and environmental conditions to realize the full potential of growth in every region, narrow down regional and crop imbalances to accelerate growth and, in the process, ensure food and nutritional security. In this context, the National Policy on Agriculture seeks to actualise the vast untapped potential of Indian agriculture, strengthen rural infrastructure, support faster agricultural development, promote value addition and accelerate growth of agro-business. As a result of dismantling of Quantitative Restrictions on imports as per WTO Agreement on Agriculture, commodity-wise strategies and arrangements are being formulated for protecting the grower from adverse impact of undue price fluctuations in world markets and for promoting exports. Import duties on manufactured commodities used in agriculture are being rationalized. To promote agricultural exports, Government of India has notified 41 agri export zones spread over 17 States which will entail an investment of around Rs. 11470 million. A projected export target of more than Rs. 30,000 million during the next five years is likely to be achieved and a substantial amount of direct and indirect employment is likely to be generated in the wake of the setting up of these zones. Liberalization of world trade in agriculture has provided new opportunities to the farm sector to access markets for agricultural commodities worldwide. To make this happen, various reforms are being brought about to remove all barriers in agricultural sector - whether legal or policy induced - which lead to inefficiencies and monopoly trends in the functioning of agricultural markets. The inter-Ministerial Task Force set up by the Ministry of Agriculture to strengthen and develop agricultural marketing has recommended promotion of direct marketing and contract farming. It has also advocated development of agricultural markets in private and cooperative sectors, expansion of future trading to cover all agricultural products and use of information technology to provide market- led extension services to farmers. In the backdrop of these developments, the India Trade Promotion Organisation (ITPO) recently hosted the 4th Krishi Expo in New Delhi to showcase India's latest advancements in the field of agriculture. It also served as a forum for meaningful business interactions amongst the farming community. The Expo also focused on the scope for technology absorption in the vital agro sector. Agriculture and its allied products are India's core competence. Not only is this sector diversified with a large variety of crops, fruits, vegetables and flourishing dairy sector, but we are among the world leaders in output of many products. India recently made a breakthrough in foodgrains exports by being ranked as the sixth major exporter of wheat; in rice exports, it is next to Thailand and ahead of Vietnam. The government has also liberalised the exports of pulses with the view that it would encourage farmers to produce more as they would get remunerative prices. Among agro-based industry products, cotton yarn, fabrics and made-ups are the single largest forex earner. 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