REMOVAL OF IMPORT RESTRICTIONS AND INDIA AGRICULTURE - THE CHALLENGE AND STRATEGY

There is a demand from some developed countries that India, since it w as no more suffering from the balance of payment problem, should come out with a plan to phase out quantitative restrictions (QRs) on import s. On the other hand, Indian officials in the Krishi Bhavan fear that liberalisation of agricultural imports would hit Indian producers and impair the growth prospects of the farm sector. Against this backgroun d, this paper discusses: (a) the implications of removal of QRs for In dian agricultural sector, (b) circumstances that would lead to imports after removal of QRs, and (c) strategy and policy the country should follow to minimise the adverse impact of QR removal on agricultural se ctor.