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FM to meet distressed exporters on Nov 15

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Agencies

Posted: Nov 11, 2007 at 0000 hrs IST

New Delhi, November 11: Finance Minister P Chidambaram will meet heads of different export bodies on November 15, amid indications that the Commerce Ministry is pressing for another package for exporters who are witnessing a fall in profit due to a sharp rise in rupee.

"The Finance Minister will evaluate the impact of rupee appreciation on exports," an official from one of Export Promotion Councils (EPCs) said.

Besides senior representatives of the Federation of Indian Export Organisations and EPCs from the worst-hit sectors like textile, gems and jewellery, engineering and electronics are also expected to attend the meeting.

Before meeting Chidambaram, the exporters would meet Commerce Secretary G K Pillai on November 14 and seek the support of the Commerce Ministry for mitigating their problems.

The rupee has risen by about 12 per cent against the dollar since January. This has not only cut the margins of exporters but also affected their competitive strength against China in the developed markets of the US and Europe.

While the government has already given relief packages, the exporters are seeking more help by way of reimbursement of state level taxes as well. Exporters are already getting refund of several Central taxes through different schemes like Duty Entitlement Pass Book (DEPB) and duty drawbacks.

The government had recently increased the DEPB and drawback rates besides exempting several items from the service tax.

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