Duty cut high on trade plan agenda
R. SURYAMURTHY
New Delhi, April 6: The foreign trade policy, to be announced on Friday, could make the import of food articles, commodities and metals cheaper, both to check inflation and make industry competitive globally by allowing firms access to raw materials at a lower cost.
To check prices, the government has scrapped import duties on edible oils, banned the export of non-basmati rice, cut duties on maize imports to zero from 15 per cent and extended the ban on pulse export by a year. It has also banned the export of edible oils and scrapped the export refund schemes in steel and cement.
With inflation touching a more-than-three-year high of 7 per cent, the government is expected to boost imports and encourage exports of only those value-added products that do not push inflation.
Analysts said inflation in commodities such as rice and pulses was because of a shortage in the supply of rice of up to 4 million tonnes and pulses of up to 2 million tonnes.
Fiscal measures such as reducing customs duties for a short period of time until prices stabilise will help to bridge the gap between demand and supply. There could be a similar move in metals and metal products.
Showing posts with label commerce. Show all posts
Showing posts with label commerce. Show all posts
Apr 7, 2008
Mar 27, 2008
Debate on export target
R. SURYAMURTHY
New Delhi, March 26: The government is considering a $200-billion export target for 2008-09 in the annual review of the foreign trade policy next month. However, exporters, who are already hit by the rupee’s appreciation, are sceptical about such a high target when the signs of a slowdown in the US economy are looming large on them.
“There has to be a realistic approach in setting the target. This year we are unable to achieve the target, what is the point in setting such ambitious targets,” said D.K. Nair, secretary general of Confederation of Indian Textile Industry.
However, the government is considering an increase in the export target to $200 billion as lower import costs have benefited the sector, which re-exports finished goods, officials said.
The textile sector is one of those hard hit by the rupee appreciation. About four million people in the labour intensive sectors such as textile, leather, marine products and handicrafts have lost their jobs till September.
R. SURYAMURTHY
New Delhi, March 26: The government is considering a $200-billion export target for 2008-09 in the annual review of the foreign trade policy next month. However, exporters, who are already hit by the rupee’s appreciation, are sceptical about such a high target when the signs of a slowdown in the US economy are looming large on them.
“There has to be a realistic approach in setting the target. This year we are unable to achieve the target, what is the point in setting such ambitious targets,” said D.K. Nair, secretary general of Confederation of Indian Textile Industry.
However, the government is considering an increase in the export target to $200 billion as lower import costs have benefited the sector, which re-exports finished goods, officials said.
The textile sector is one of those hard hit by the rupee appreciation. About four million people in the labour intensive sectors such as textile, leather, marine products and handicrafts have lost their jobs till September.
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