FIEO seeks immediate release of export benefits
NEW DELHI : Export duty could also be raised to make steel available in the domestic market at reasonable and competitive prices
Exporters’ body FIEO on Wednesday urged the government to immediately release all export benefits under duty drawback, tax refund scheme RoDTEP, and goods and services tax as that would help in making shipments profitable.
The Federation of Indian Export Organisations (FIEO) President S K Saraf also expressed concerns over the rising prices of domestic inputs and suggested reduction in import tariff to soften the prices.
He urged shipping companies to rationally increase freight as all stakeholders are facing the same problem and with recovery in sight, all will sail together.
‘Liquidity should be addressed by encouraging banks to lend to the export sector and more importantly instantly releasing all export benefits including drawback, MEIS (Merchandise Exports from India Scheme), GST and RoDTEP (Remission of Duties and Taxes on Export Products) to name a few. This will help in making exports profitable else with delay in refund, exporters profitability is wiped out with increasing interest burden,’ he said in a statement.
Saraf said although order book position of exporters is encouraging, increase in the prices of many inputs have resulted in re-negotiation of orders with some price escalation, which may also support exports in value terms by 10-15 per cent.
Further, he said that to achieve USD 400 billion exports target for 2021-22, a concerted strategy would be required, treating exports a national priority by all wings and ministries.
In a separate statement, the Engineering Export Promotion Council (EEPC) said that value-added steel products exported from India are becoming uncompetitive in the international market due to rising prices of primary steel locally and hence both tariff and non-tariff measures could be considered to rein in the steel prices.
Accordingly, it suggested that quantitative restrictions could be imposed on export of primary steel which is used as a key raw material by local manufacturers.
Export duty could also be raised to make steel available in the domestic market at reasonable and competitive prices, it said.
‘There has been a substantial jump in export of primary steel in recent months while many value-added steel products shipped from the country have seen a 15-35 per cent decline.
‘We have therefore suggested the government to take non-tariff and tariff measures as part of the raw material export policy,’ it said adding that otherwise, many MSME exporters will be out of business and it will lead to unemployment of skilled people.
(PTI)