US senators demand investigation into Indian Agri market By Lalit K Jha

Washington, Jan 14 (PTI) Two influential US senators on
Tuesday demanded a study of the agriculture market in India,
including the effect of tariff and non-tariff measures, on the
US agricultural exports.

The two senators are Max Baucus, Chairman of the Senate
Committee of Finance and its ranking member Chuck Grassley.
The Committee on Finance has Senate jurisdiction over
international trade.

"It's important that we look at India because it's one of
the world's largest economies but our farm products make up
only a small part of India's agriculture markets," Senator
Grassley told reporters during a teleconference on Tuesday.

In a letter to US International Trade Commission (ITC)
Chairman Shara L Aranoff, the two senators asked that data in
the report span a five year period from 2003 to 2008. They
have sought the report within 10 months.

"The information we're requesting in the letter will put
us in a better position to determine how to further open India
to US agricultural exports, including Iowa products," said
Grassley, who represents Iowa in the US Senate.

In the letter, released to the press after the
teleconference, the two Senators said: "Although the United
States is globally competitive in a wide variety of
agricultural products -– ranging from wheat, corn, soybeans,
peas, lentils, and edible oils -– US farmers only provide
about five per cent of India's current food imports."

It said: "While US exporters can provide individual
examples of trade measures that prevent their sales to India,
the extent to which trade and investment measures account for
the disproportionately low US share of India's agricultural
imports remains largely undocumented."

This report may also help to provide further direction
for US engagement in the Doha Round trade negotiations,
Grassley said.

In the letter, the two senators have urged the ITC to
include in its investigation a description of the principal
measures affecting Indian agricultural imports, including
tariffs, sanitary and phytosanitary measures, food
regulations, packaging and labeling requirements, pricing
policies, intellectual property policies, and customs
procedures.

They have also sought an evaluation of the impact of
India's food marketing and distribution system, including
market structure, transportation infrastructure, and
cold-storage capacity, on US agricultural products in the
Indian market. PTI LKJ
AM