Amir Ullah Khan, presiding over the session, welcomed the participants. After a brief elucidation on the mandate of IDF and the expertise areas of the Fellows, he introduced Professor Shubhashis Gangopadhyay and asked him to make the opening remarks. Professor Gangopadhyay talked about the role of standards as a Non Tariff Barrier to Trade (NTB) and importance on deciding its level. The latter is important as inevitably standards are never over complied. He also talked about the ‘race to the bottom argument’ wherein if standards are lower in one country but the market size is larger, manufacturer may ignore their smaller, more stringent market. But this argument breaks down if the buyer is conscious about the quality of the product purchased and ready to pay a premium for a higher quality. Hence the importance of consumer awareness and capacity building among small producers.

Samrat Bose gave his presentation outlining the history of the Agreement on Technical Barriers to Trade and Sanitary and Phytosanitary Measures, charted out the growth in agricultural exports in the last decade and talked about the SPS Agreement in detail. He also pointed out the problems plaguing the Indian food-processing industry in meeting the norms due to overlapping authority of the various implementing agencies as well as the need to improve the domestic quality standards.

Next, Amir Ullah Khan outlined the proposed study being undertaken with funding from the European Union. An in-depth study of the market structure of agricultural commodities is being undertaken for the small farmer to be able to deal with the threats as well as the opportunities arising from the opening up of agricultural markets. He also talked about the stumbling blocks faced by India in standard formulation that is an integral part of the SPS Agreement. Thereafter the floor was open to questions and thoughts of the participants.

Suman Sahai of Gene Campaign talked about India losing out on opportunities in standards due to sheer neglect. India has not been forthcoming in participating on the standard setting sessions at the WTO. She pointed out that there was a question on what range of chemicals would be acceptable, and CODEX does not feature any of our
acceptable tests. She argued for a proactive approach to standard setting. Taking the azodyes case as an example she said that we could easily chart out a time table for their passing out rather than an immediate ban. India has an unmatched advantage in the use of vegetable dyes. And in being able to use non chemical dyes in the food sector. She addedthat more than meat and diary products, our advantage is in the vegetable sector, where we are the second largest producer behind China. She also pointed out that ANSFA allows for determining food standards and with the use of such tools it is easy for us to develop our own standards. Suman Sahai also gave the example of the Sudan dye being used on Guntur chillies which is clearly acceptable on health grounds. She discussed the cut flower auctions in Maharashtra where the Dutch monopsony caused hurt to local farmers. And advocated that farmers be educated in the use of agents, like in the Gap method used by the grape farmers where the pesticide is given enough time to get washed off by the rains that come towards harvest time.

Professor Naushad Ali Azad commented on the need for continuous monitoring and certification. He advocated the use of critical points where producers could be evaluated so that the end product is easily certified. Bharat Ramaswami discussed the need to reach out to the small farmer with extension services. And pointed out that fair standards can not be seen as being trade distortionary. Mohammad Saqib explained HACCP and how it is a mechanism that relies on careful record keeping ensuring standards are met at all points.

The workshop was the first in a series planned for the next three months that would enable the project team discuss and take feedback on its findings and disseminate the results.