'Disappointing exports figure call for Govt's intervention'

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SME Times News Bureau | 16 Sep, 2015
Apex exporters body, Federation of Indian Export Organisations (FIEO) has said that the disappointing exports figure call for immediate intervention of the government at the highest level.

Expressing his disappointment over August, 2015 export data which exhibited over 20 percent decline, S C Ralhan, President, FIEO said, "the softening of the prices of the key agricultural and industrial inputs coupled with contraction in global demand is the prime cause for the same."

Country's merchandise exports declined further for the ninth straight month in August to USD 21.27 billion, 20.66 percent lower than the USD 26.80 billion worth shipped in the same month of last year, official data showed on Tuesday.

According to the data furnished by the commerce and industry ministry, imports during the month under review fell by 9.55 percent at USD 33.74 billion.

Trade deficit during August rose on a year-on-year basis and stood at USD 12.48 billion, as compared to USD 10.67 billion in the corresponding month of last year.

The sharp decline in exports of engineering goods (declined by about 30 percent), leather& leather goods (declined by about 13 percent), apparel (declined by about 7 percent), petroleum products (declined by about 48 percent) and marine products (declined by about 21 percent) contributed to the dismal performance.

Ralhan said that sectors such as gems & jewellery, pharmaceuticals and ceramics products which were showing modest growth have also declined viz-a-viz their growth in July, 2015.

President, FIEO said that the main reason for decline in engineering goods seems to be the increase in the duty on steel products without corresponding increase in drawback rate which has compelled many small exporters to opt out of contract.

Ralhan pleaded for immediate reintroduction of Interest Subvention of 3 percent for export sector, release of shipping bill for claim of MEIS benefits and utilization of MEIS scrip, increase in MEIS benefit to FMS/FPS level to increase liquidity at the end of exporters.

He suggested that Hon'ble Prime Minister and Commerce & Industry Minister should intervene in the matter and have immediate consultation with export bodies and leading exporters to draw a road map for exports in such challenging time in which reaching last year's exports figure looks difficult.