India on Monday pressed the Chinese government to remove long-pending restrictions on the import of 17 varieties of agro-products, arguing that doing so would help address the fast-widening trade imbalance that has increasingly strained the trade relationship.
Minister of State for Agriculture K.V. Thomas, on a six-day visit to China exploring co-operation in food security and agriculture, told Chinese Vice Minister for Agriculture Niu Dun in talks that China also needed to expedite clearances for basmati rice and bovine meats, which had both passed safety tests but were still awaiting the green signal from Chinese authorities.
Over the past decade, India has sought market access for 17 varieties of agro-products, but officials said China had only granted access for three of them — grapes, bitter-gourd and more recently, mangoes. India is still pressing for access for seven varieties of fruit, including water-melons and papayas, and seven kinds of vegetables, including brinjal and okra.
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“Our message today was that one mechanism [to address the trade imbalance] is for India to export huge quantities of fruits, vegetables, meat and basmati rice,” Mr. Thomas said after Monday's talks.
He said engagement on the issue had begin to yield some progress, citing the clearance for the export of mangoes. “Their attitude was positive today, but we will have to have more interactions [on this issue],” Mr. Thomas added.
Indian officials said there was considerable potential for the export of agro-products to China given the size of the market here and the speed of its growth. India now exports $15-20 million of agro-products, accounting for less than 0.2 per cent of overall exports, mainly driven by iron ore. The trade deficit between the two countries grew to a record $ 16 billion last year. Indian officials see particular potential for basmati rice, given its success in American and European markets. In trade talks in January, Indian officials called on China to grant access to basmati rice, after safety tests were conducted last year. Officials from China's Agriculture Ministry and the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) visited farms and fumigation facilities in India in October, following which India sought the necessary clearances to begin exports. Chinese authorities, however, had yet to respond to the request, officials said.
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Storage facilities
Besides trade issues, Mr. Thomas will, during his visit, examine grain storage facilities in China. He said given India's growing need for better storage facilities, and China's success in developing better technologies, there was room for co-operation. “We are here to learn, and to see what China is doing right,” he said.