Pointing this out the Delhi Exporters Association (DEA) on Thursday sharply criticised the government's lack of initiative to contain the fall in exports and its failure to redress the basic operational problems faced by exporters.

"Even though the interest rates have been brought down, the fact remains that there was no credit available for exporters in particular and the entire industry in general," said DEA president S P Aggarwal.

Commenting on the Rs 760-crore package announced by the commerce minister on Wednesday, Aggarwal said :"that exporters were shocked to find nothing substantial for growth in the package." The package had wholly overlooked the problems of the exporters which would only lead to further decline in export growth in the coming months.

Aggarwal claims that he has even challenged commerce ministerRamakrishna Hegde to show that exports go up under present conditions. After a 17 per cent decline in export growth in May 1998, exporters were expecting progressive and practical measures by the government, he said.

Aggarwal said exports from India would not grow by pulling down interest rates on export credit from nine to two per cent. We also demand zero per cent interest rate on both packing and post-shipping credit, he added.

At the same time, DEA also feels that export credit should be made available by banks. He said it is high time the government does something concrete to rectify the shortcomings of a lacklustre exim policy and an equally lacklustre credit policy. Aggarwal said the 20 per cent export growth target will remain a distant dream unless the government removes bottlenecks and streamlines procedures.

DEA also pointed out that almost half of the exporter's time is wasted in solving various problems related with customs, banks, clearances from the Reserve Bank of India and othergovernment departments. This had become the biggest hurdle for the sector, he added.

Nearly 10,000 exporters have closed their operations in the past one year due to these problems, he added.

The association also said that previous finance minister P Chidambaram had recommended about the payment of interest in case the drawback payments are not received within three months. But ironically the industry has not even received a penny of the duty drawback for the last two months, let alone the fact of paying interests.

He also said that all air and sea cargo must be cleared within twenty four hours. There should be separate labour laws for exporters and all import licences should be abolished.

A special cell is needed to be set up in every state for fast redressal of the complaints of the export industry, DEA pointed out. He also feels that the prime minister should hold regular meetings with chief ministers and leading export associations for speedy export reforms.