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        Customs, DGFT & SEZ

        Ban on Agricultural Products

        June 26, 2019

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        The export and import policies for agricultural products, which include the decisions on lifting and 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.  During the last three years, no bans have been imposed on export and 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:

        • 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.
        • 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.
        • 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, PiyushGoyal, in a written reply in the Lok Sabha today.

        Export restrictions: processed and organic agricultural products exempted while essential commodity curbs trigger high level review and WTO compatibility. The Agriculture Export Policy provides a stable trade policy: processed and organic products will remain outside export restrictions even if primary products are restricted; export prohibitions on identified essential commodities under extreme price situations will be decided by a high level committee and pursued in a WTO compatible manner; liberalised import is permitted for value addition and re export.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Export restrictions: processed and organic agricultural products exempted while essential commodity curbs trigger high level review and WTO compatibility.

                                The Agriculture Export Policy provides a stable trade policy: processed and organic products will remain outside export restrictions even if primary products are restricted; export prohibitions on identified essential commodities under extreme price situations will be decided by a high level committee and pursued in a WTO compatible manner; liberalised import is permitted for value addition and re export.





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                                ActsIncome Tax
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