Exim Policy for the new fiscal unveiled on Monday has called for a major thrust on agri-export zones with increased participation of corporate sector and concessions in duty drawback schemes.

Sanction has already been given to 45 commodity-specific agri-export zones and the scheme is to be given further boost under the new policy with corporate ownership and takeover.

The policy for 2003-04 announced by Commerce Minister Arun Jaitley calls for encouragement to the "corporate sector with proven credentials to sponsor new zones or takeover of already notified zones or their part for boosting agri-exports".

These corporates will be providing services such as pre and post harvest treatment and operations, plant protection, processing, packaging, storage and related research.

It allows agriculture and horticulture processing export oriented units to provide inputs and equipments to contract farmers in domestic tariff area.

Jaitley said this has been done to promote production of goods as per the requirement of importing countries, integrate production and processing and promote agro-exports.

Another significant measure announced is to factor in the cost of pre-production inputs such as fertiliser, pesticides and seeds in the duty entitlement pass book rate for selected agro products.

DEPB aims at neutralising the incidence of customs duty on the import content of the export product by way of grant of duty credit against export product.

Under DEPB, an exporter may apply for credit, as a specified percentage of free-on-board value of exports, made in freely convertible currency.

Jaitley said with a view to promote agricultural export from the country and remunerative returns to the farming commune in a sustained manner, AEZs as announced earlier would be set up for end to end development for export of specific products from a geographically contigous area.

AEZs would be identified by the state government, who may evolve a comprehensive package of services provided by all state government agencies, state agriculture universities and all institutions and agencies of the government for intensive delivery in these zones.

Apart from the proposed corporate sponsorship and takeover, services would also be managed and co-ordinated by state government.

Agricultural and Processed Foods Export Development Authority will supplement, within its schemes and provisions, efforts of state governments for facilitating agri-exports.

Units in the AEZs would be entitled for all the facilites available for exports of goods in terms of provisions of the respective schemes, the policy added.

The Exim Policy 2003-04