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'Continue export sops to help execution of new orders'
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SME Times News Bureau | 15 Jan, 2020
Indian export sector is looking up after months of fall and severe slide in wake of Covid-19 related disruptions.
According
to exporters body FIEO, Indian exporters have started receiving a lot
of enquiries and orders from across the globe helping many sectors to
show improved export performance, which is likely to get better in next
few months.
But, FIEO wants government to continue incentivising
exports in these difficult period through continuation of schemes such
as MEIS that provides requisite liquidity to exporters.
"At this
point of time when exporters are receiving new orders from new buyers
and destinations, support needs to be given to help them to execute such
orders. Unfortunately, many of the exporters have expressed their
inability to honour such orders, in view of liquidity challenges, due to
stoppage of exports benefits and refund of GST," S K Saraf, President,
FIEO said.
Exporters, particularly from MSME sector, are facing
huge liquidity challenges due to the stoppage of MEIS benefits of over
Rs 10,000 Crore from April, 2020 and IGST refund now.
Saraf has
urged the Government to look into the issue as any letup in export
efforts, at this juncture, will cost the country dearly while successful
execution of these orders will bring additional export business from
new and unexplored territories.
All wings of the Government
should sit together, opined Saraf, to resolve the technical and
financial issues, helping the seamless flow of liquidity to exports
sector.
President, FIEO also said that banks are helping eligible
exporters with the Emergency Credit Line Guarantee Scheme but due to
hold up of GST refund and MEIS, the exporters are forced to seek
additional loans from banks and such additional requirement is now
subject to very high interest rates.
"Banks need to consider this
pragmatically and provide a competitive interest rate to the exports
sector particularly as the deposit rates have come down substantially
with the reduction in key interest rate. Government needs to pay
interest on the delay in refunding GST to compensate the exporters," the
FIEO president said.
FIEO also urged the Government to address
the issue of Risky Exporters by providing them duty drawback and IGST
benefits against a bond, if physical verification of such exporters has
been established. The SOP issued for risky exporters may be meticulously
followed so that after due verification, exporters are taken out from
the category immediately.
Saraf exuded confidence that export
performance is improving and with due support from all the stakeholders,
we can bring exports back on track by the end of the year.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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75.65 |
Japanese
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56.85 |
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