The Hindu : Business : Handicrafts exporters seek more sops

Online edition of India's National Newspaper
Wednesday, Oct 17, 2007
ePaper

Business

Business

Handicrafts exporters seek more sops

Staff Reporter

NEW DELHI: The handicrafts industry in India, which has been adversely affected by the appreciating rupee, has urged the Union Government to immediately announce sops to save the industry and jobs of those employed in it.

The Export Promotion Council for Handicrafts (EPCH) has sought an increase in duty drawback rates for the industry as a whole and ensure fixed rate of dollar for the industry for at least a year to save its export orders.

While talking to The Hindu, EPCH Executive Director, Rakesh Kumar, said the consistent strengthening of the rupee against the dollar has hit the handicrafts industry hard.

Accessing the impact of rupee rise during the past six months, Mr. Kumar said already exporters were talking about 15 per cent reduction in their profits due to the appreciating rupee.

According to Mr. Kumar, the recent relief announced by the Finance Ministry for exporters is not enough.

“Only seven items have been exempted from service tax in our industry. We want that the entire industry, which is a net foreign exchange earner and therefore suffering greater loss, should be benefited. Workers involved in zari and zari goods, woodware, handprinted textiles and scarves, imitation jewellery and art metalware — all are equally affected,” he added. The EPCH had already met the Union Finance Minister and demanded a five per cent drawback rate, a fixed dollar rate for handicrafts exports and cheap credit facility on pre- and post-shipment for at least next 18 months.

Mr. Kumar said that EPCH, which is organising the 24th edition of the Indian Handicrafts and Gifts Fair in Greater Noida near Delhi from October 16-19, would try to gauge the mood of buyers and explore options to minimise their losses in exports.

Printer friendly page
Send this article to Friends by E-Mail

Business