Handicraft exporters seek additional benefits in FTP

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SME Times News Bureau | 19 May, 2012
The Export Promotion Council for Handicrafts (EPCH) has urged the Union Minister of Commerce Industry and Textiles, Anand Sharma for additional benefits for the sector under Foreign Trade Policy (FTP) for quantum jump in exports.

Anand Sharma met the representatives of the councils on Thursday and discussed the suggestions for the annual supplement of the Foreign Trade Policy (FTP).

EPCH chairman Arvind Vadhera briefed the minister about the export performance of the handicrafts sector and also stated that the exports of Handicrafts during the year 2011-12 have touched

Rs. 12975.25 crore (USD 2705.66) surpassing the target set for the year.

EPCH Chairman also submitted the proposals to be incorporated in the Annual Supplement of the FTP including the benefit of duty credit scrip may be enhanced to 10 percent on all handicraft items (presently the benefit is 7 percent), Duty Free Import Provision - Expansion of the list of embellishments/ trimmings and consumables and enhancement of the percentage from 5 percent to 10 percent.

Since the major markets of Indian handicrafts i.e. Europe and USA are facing economic problems, the payments from the overseas buyers are delayed. In wake of the above, the period may kindly be extended from existing 180 days to 360 days, Continuation of subvention of bank interest of two percentâ beyond March 31, 2012 and Deemed exports benefit on the sale of handicrafts items to foreign tourists.

Rakesh Kumar, Executive Director-EPCH, expressed the hope that with the support from the Government in the Foreign Trade Policy the Council will achieve the target of Rs. 15000 Crore (USD 3200 million) in the year 2012-13.

"The export figures of Rs. 1176.17 crores (USD 227.16 million) for the month of April 2012-13 are promising and the sector is on course for achieving its export target," he added.

However, the Executive Director expressed fears that with the ongoing Rupee-Dollar exchange fluctuations, the imports of non-ferrous metals will be affected and that may affect the exports of some segments of the Handicrafts sector like metalware.

EPCH Chairman thanked the minister for his patient hearing and hoped that the sector will be benefitted in the annual supplement of the FTP.

Secretary Textiles Kiran Dhingra, Secretary Commerce Saurabh Chandra and DGFT Dr. Anup K Pujari were also present in the meeting.