The Hindu Business Line : Exporters gain on hope of relief in foreign trade policy

Stocks of some of the exporting companies improved a little on expectation of announcement on relief measures in the foreign trade policy, scheduled to be declared on Thursday.

The Commerce Ministry is reportedly considering additional sops to exporters to help them tide over the demand contraction in the US, Europe and Japan. Exports declined consecutively for nine months since October 2008 to June 2009, according to the last available official data. Though the rate of decline has been arrested to an extent, the negative growth rate is likely to continue for a few more months, according to observers.

Mr Rajendra Hinduja, the Managing Director of Gokaldas Exports, told Business Line that apparel exporters were looking forward to continuation of focused market scheme, which would end on September 30, for another year.

Under the scheme, an apparel exporter gets back 2 per cent of exports (f.o.b value) to certain markets, including the US and Europe, as duty credit note.

Mr Hinduja said that apparel exporters were also expecting the Government to increase duty credit note to 4 per cent.

Among other relief measures sought are an increase in the duty drawback – from 8.8 per cent to 12 per cent on an ad hoc basis – and higher interest subvention from 2 per cent to 4 per cent. The exporters have also sought refund of service tax dues and complete exemption from service tax.

Exports during the April to June quarter dropped by 31.3 per cent and apparel exporters have seen a decline of around 15 per cent.

Among the stocks that improved on Wednesday were textiles and jewellery exporters.

Top gainers included SEL Manufacturing (up 9.55 per cent), Alok Industries (up 7.39 per cent), Alps Industries (up 4.96 per cent), Gokaldas Exports (up 4.96 per cent), Hanung Toys & Textiles (up 4.96 per cent), Bombay Rayon (up 0.79 per cent), and JBF Industries (up 0.43 per cent). Su-Raj Diamonds (up 13.96), Gitanjali Gems (up 0.76 per cent) and Classic Diamonds (up 3.60 per cent) were also on the gainers’ list.

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