Agriculture Reference
In-Depth Information
Regulations/restrictions
Origin and current status
Enforcement details
International trade
Export monopoly/restrictions
Adjustable quantitative ceiling (currently 0.10 million tons) on export
Year introduced
1965
of wheat and coarse grains; strict licensing requirement for paddy
Still enforced?
Partially
export; other grain exports are subject to registration of contracts
Import monopoly/restrictions
FCI retains full monopoly control over import of common paddy, fine
Year introduced
1965
variety rice, wheat, and coarse grain; wheat import by roller
Still enforced?
Yes
flourmills allowed under certain conditions
Movement restriction
Officially lifted in 1977, but has been enforced sporadically across
Year introduced
1941 (during British rule)
India until recently; now enforced in selected states
Still enforced?
Yes, partially
Credit concession to FCI
Interest rate was 7 percent lower than market rates during 1972-83,
Year introduced
1973-74
5-6 percent lower until mid-1990s, 2-3 percent lower since 1997
Still enforced?
Yes
Restrictions on trade credit
Enforced at country level; Reserve Bank of India restricts private
Year introduced
1955, under Reserve Bank of
traders access to credit by setting limits on working capital
India's Selective Credit
borrowing and interest rates
Control Act
Still enforced?
Yes
Preferential transportation
FCI has priority in railway transportation over private traders
Year introduced
1965
throughout India
Still enforced?
Yes
Restrictions on storage
Imposes stock quantity limits; lifted by the national government, but
Year introduced
1955, under Essential
frequently revised and sporadically enforced in recent years at the
Commodities Act
state level
Still enforced?
Yes
Restrictions on processing
Forces rice millers to deliver certain proportion of output (levy) to FCI
Year introduced
1958, under Rice Milling
at fixed processing margins; restricts open market sales until levy
Industry Act
commitment is fulfilled; enforced in most states
Still enforced?
Yes
