The European Union's anti-deforestation regulation is a form of a non-tariff barrier and India should raise this in the World Trade Organization (WTO) and other trade forums, a parliamentary panel report said on Tuesday.
It also said the regulation's compliance mechanism for the Indian growers is still under development by the Coffee Board, which needs to be fast-tracked so that India is fully equipped under the compliance framework and is able to meet the extended deadline of 2026.
"Implementation of European Union's anti-Deforestation Regulation (EUDR) is in fact a form of non-tariff barrier and government should flag this in the WTO and other trade forums," the report on performance evaluation and review of some commodity boards said.
It added that the EUDR, which imposes strict regulatory requirements on rubber producers and exporters targeting European markets, is also a non-tariff barriers imposed by the EU.
The report added that the effects of free trade agreements (FTAs) on the spice trade need to be reviewed.
"FTAs should be designed to protect the interests of Indian spice farmers and exporters while also providing access to new markets," it said, adding that there are also concerns that pepper from ASEAN countries is being undervalued and cleared by customs based on these lower declared values.
It recommended that the government formulate clear guidelines for monitoring imports under the Indo-Sri Lanka trade pact closely, and issue licences to importers through government authorities to prevent third countries from exploiting the pacts.
Meanwhile another parliamentary panel report on leather industry said free trade agreements with major markets such as the EU, and the US, along with better use of existing pacts with countries like Japan, Australia, and the UAE, would help boost India's leather exports.
It said a targeted export strategy is required to improve market access, explore alternate and new markets, strengthen the global presence of Brand India, and ensure that institutional support is aligned with the evolving needs of the industry.
The committee suggests leveraging existing FTAs with countries like Japan, Australia, the UAE and ASEAN to increase export of leather and leather products while also prioritising new trade pacts with key markets such as the EU, it said.
"It emphasises the need to negotiate FTAs with major markets such as the EU, and the US. Developing market linkages and global branding beyond traditional export destinations is essential," according to the report of department related parliamentary standing committee on commerce.
It recommended that the department of commerce should conducts an assessment to identify funding gap particularly in MSME's and enhance financial support to ensure seamless functioning of sectors requiring significant capital.
It also suggested providing capital and operational incentives to attract large-scale investments, promoting economies of scale across both component and end product sectors, while supporting both labour-intensive and high-tech manufacturing.
"Further, the department should explore measures to simplify credit access, provide credit at low interest rates and extend priority sector lending benefits," it said.
Further, to address the issue of heavy dependency on imports for machinery, equipment and spare parts, it suggested providing financial support for the development of large, integrated tanneries.
The committee recommended exploring the option of importing completely knocked down units from countries like China to support local assembly and lower manufacturing costs.
It also said the regulation's compliance mechanism for the Indian growers is still under development by the Coffee Board, which needs to be fast-tracked so that India is fully equipped under the compliance framework and is able to meet the extended deadline of 2026.
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"Implementation of European Union's anti-Deforestation Regulation (EUDR) is in fact a form of non-tariff barrier and government should flag this in the WTO and other trade forums," the report on performance evaluation and review of some commodity boards said.
It added that the EUDR, which imposes strict regulatory requirements on rubber producers and exporters targeting European markets, is also a non-tariff barriers imposed by the EU.
The report added that the effects of free trade agreements (FTAs) on the spice trade need to be reviewed.
"FTAs should be designed to protect the interests of Indian spice farmers and exporters while also providing access to new markets," it said, adding that there are also concerns that pepper from ASEAN countries is being undervalued and cleared by customs based on these lower declared values.
It recommended that the government formulate clear guidelines for monitoring imports under the Indo-Sri Lanka trade pact closely, and issue licences to importers through government authorities to prevent third countries from exploiting the pacts.
Meanwhile another parliamentary panel report on leather industry said free trade agreements with major markets such as the EU, and the US, along with better use of existing pacts with countries like Japan, Australia, and the UAE, would help boost India's leather exports.
It said a targeted export strategy is required to improve market access, explore alternate and new markets, strengthen the global presence of Brand India, and ensure that institutional support is aligned with the evolving needs of the industry.
The committee suggests leveraging existing FTAs with countries like Japan, Australia, the UAE and ASEAN to increase export of leather and leather products while also prioritising new trade pacts with key markets such as the EU, it said.
"It emphasises the need to negotiate FTAs with major markets such as the EU, and the US. Developing market linkages and global branding beyond traditional export destinations is essential," according to the report of department related parliamentary standing committee on commerce.
It recommended that the department of commerce should conducts an assessment to identify funding gap particularly in MSME's and enhance financial support to ensure seamless functioning of sectors requiring significant capital.
It also suggested providing capital and operational incentives to attract large-scale investments, promoting economies of scale across both component and end product sectors, while supporting both labour-intensive and high-tech manufacturing.
"Further, the department should explore measures to simplify credit access, provide credit at low interest rates and extend priority sector lending benefits," it said.
Further, to address the issue of heavy dependency on imports for machinery, equipment and spare parts, it suggested providing financial support for the development of large, integrated tanneries.
The committee recommended exploring the option of importing completely knocked down units from countries like China to support local assembly and lower manufacturing costs.
