Trade Policy.

This document is a sectoral policy targeting the development of trade in different sectors, including agriculture. The policy has a national coverage and its main objective is to support economic development and poverty reduction initiatives through the enhanced contribution of trade to the national economy. The Policy also aims to create a conducive environment for the promotion of trade and business, to minimize trade deficit by increasing exports of value added products, to increase income and employment opportunities.
Emphasis is given to the promotion of agricultural and non-timber forest based special thrust areas for creating employment and income opportunities in rural areas. The Export Promotion Fund will be used with the participation of private sector in assisting the transportation of exportable agricultural products, forest based products to international market from the place of production. Commercial farming, livestock and non-timber forest products will be supported through the supplies of irrigation, machinery, fertilizers, seeds and highbred animals and poultry birds. Programmes will be implemented for production and marketing of tea, vegetable seeds , large cardamom, ginger and herbs that possess comparative advantage. Efforts will also be made to widen market access facilities for the other products the export of which has continuously increased such as tea, vegetable seeds, large cardamom, pulses and floriculture, herbs and essential oils, coffee, honey, gingers and dried gingers, oranges, vegetables as well as wooden craft products and handmade paper and paper products.
The policy provides additional incentives to export oriented industries and states that initiatives will be taken to harmonize the policies on agriculture, forest and other sectors for the effective implementation of trade policy. Lands will be made available on leasehold basis for commercial farming of forest products. The following products are included: tea, coffee, fruits, herbs, eucalyptus, soap-nut and pricklyash. The Product Development Fund will be established with the participation of the private sector and cooperatives in order to provide support for transportation and storage of handicrafts, herbs, honey, tea, milk, fish, meat, vegetables and other semi-processed products. Bonded warehouse facilities will be made available against a bank guarantee on the import of raw materials, auxiliary raw materials, packaging materials and intermediary goods used in the production of export products. It is also stated that product development programmes will be launched to increase exports of tea, coffee, vegetable seeds, herbs, dairy products and non-timber forest products. The Policy further emphasizes on the importance of establishing special economic zones for export promotion. For the development of employment oriented skills and entrepreneurship in trade sector assistance will be provided to the packaging, storing and certification of agricultural products for making their production and processing compatible to international demand by utilizing opportunities for diversification in agricultural production.
In addition contract farming and cooperative farming systems will be encouraged by attracting investments in exportable agricultural product to promote large scale production and market through commercial farming. Value chain, cost effectiveness and quality control of exportable products will be improved. Further the Policy sets forth two other strategies which are link export oriented industries with domestic markets. The Policy sets forth foreign trade promotion programs and foresees simplification of procedures regarding licensing, promotions relating to tax, customs duty and charges and relating to certificate of origin.