ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Burgeoning Edible Oil Imports and Price Shock(s)

The ever-increasing import bill of edible oil has become a chronic problem for India with edible oil being the third largest among imported goods in India, next only to crude oil and gold. There are structural issues in production, productivity, and trade of edible oils. These energy-rich crops are grown in energy-starved conditions where more than 70% of the area under cultivation is rain-fed and often cultivated with low-quality seeds in a fragmented landholding and outdated agri-management practices. It further studies the trade liberalisation measures of a liberal trade policy regime, lower import duties, duty-exemptions under free trade agreements, and changes that India has witnessed in consumption as well as retail of edible oil.

 

Indian Ocean as the Sea of Opportunities: Reinforced Regional Interdependence via Trade and Development

This article presents the evolving policy of regional trade agreements in the Indian Ocean region with India at the helm of affairs. Besides the existing arrangements such as Association of Southeast Asian Nations and South Asian Association for Regional Cooperation, new partnerships are on the horizon including the recently concluded Regional Comprehensive Economic Partnership, Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation, the Indian Ocean Rim Association, and the Asia-Africa Growth Corridor. In the process, the Indian Ocean region looks at advancing South–South cooperation. The challenge remains to prioritise collective steps toward trade and development while envisaging people-friendly international trade governance.

Union Budget and the Trade Sector

The Union Budget for 2020–21 emphasised the need to restrict imports. A number of measures were proposed to realise this objective. These include the use of tariffs and non-tariff measures, making Rules of Origin agreed upon in the free trade agreements work efficiently, and effective monitoring of imports and exports. The finance minister spoke of modifying import tariffs for creating a level playing field for micro, small and medium enterprises in several product sectors and using import tariffs to promote the domestic production of electric vehicles and mobile phones.

 

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