NEW DELHI, Aug 25: The government is against granting a one-year moratorium for export/trading/ star trading/super star trading houses to enable them to switch over to the new criteria and become eligible for the above status.

Bowing to representations, the commerce ministry has already relaxed the criteria by scaling down the growth rate for these exporters to 25 per cent each in 1997-98 and 1998-89, instead of a 100 per cent increase proposed for them for three years ending 1999-2000 in the 1997-2002 export-import policy.

Under the policy, the eligibility criteria based on an average FoB value of exports during the preceding three licensing years had been increased from Rs 10 crore to Rs 20 crore for export houses, from Rs 50 crore to 100 crore for trading houses, from Rs 250 crore to 500 crore for star trading houses and from Rs 750 crore to 1,500 crore for super star trading houses.

This was done keeping in view the $ 75-100 billion export target to be achieved by the turn of the century in order to increase the country's share in the global market and the fact that the above status holders contribute nearly 60 to 70 per cent of total exports.

The policy gives double weightage to products manufactured by the small-scale/tiny sector/cottage sector and triple weightage to handlooms and handicrafts sector, including handloom-made silk products hand-knotted carpets and silk carpets.

A major problem facing the SSI sector has been export marketing and against this background the role of such export houses assumes significance.The scheme for export and trading houses was conceived in 1991-92. Since then, the country's exports have doubled. The government expects these exporters to enhance their contribution to total exports.

Export and trading houses are eligible for benefits of special import licences and other concessions.

The federation of Indian export organisations has been demanding that the eligibility revised be kept in abeyance for one year to enable export and trading houses to prepare themselves to met the new eeligibility norms, in view of the poor showing on the export front last fiscal.

Sources in the director-general of foreign trade (DGFT) explained that the incremental growth rate to be achieved by say export houses worked out to only 25 per cent in 1997-98.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.