Financial Daily from THE HINDU group of publications
Wednesday, May 08, 2002
Financial Daily from THE HINDU group of publications Wednesday, May 08, 2002 |
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Agri-Biz & Commodities
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Fertilisers US seeks re-look at DAP subsidies given by India Our Bureau
NEW DELHI, May 7 THE US Government has formally initiated discussions with the Indian Government for a re-look at the existing policy regime in the country on di-ammonium phosphate (DAP). "We are trying to resolve the various issues relating to DAP. I have already taken up this matter with the Indian Commerce Secretary and the Secretary in Finance Ministry. I also intend to do the same with the Minister for Chemicals and Petrochemicals," Mr William H Lash III, Assistant Secretary of Commerce for Market Access and Compliance, told newspersons here on Tuesday. He held that there was no reason as to why the Indian Government should give subsidies to the extent of $1-billion a year on DAP, while at the same time "knocking out valuable American exports" from reaching Indian markets. Mr Lash claimed that Indian consumers of DAP were paying more than what his country could offer. "The trade policies adopted on DAP is a lose-lose situation for both the countries. As a result of large subsidies, US sales of DAP to India have come down from $400 million a year to $50 million. Such subsidy measures are only intended to serve a narrow interest," Mr Lash said at an inter-active meeting organised by Federation of Indian Chambers of Commerce and Industry (FICCI) here. The visiting dignitary held that the US investments in India would gain momentum if the country were to hasten its reforms. "It is investments that leads trade. Trade follows investments," he said. The US Government expressed concern over India's pattern of removing and replacing quantitative restrictions (QRs) with "onerous and burdensome" tariffs, which they claimed were designed to keep away products from Indian markets.
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