The Hindu Business Line : `Booster for tea, gem and jewellery and jute exports'

Exports of tea, gem and jewellery and jute may increase by 10 per cent in 2009-10 vis-…-vis last fiscal with a number of incentive schemes announced for the sectors on Thursday in the Foreign Trade Policy 2009- 14, according to Mr Ramesh Kumar Agarwal, Chairman, Eastern Region, Federation of Indian Export Organisations.

"While the overall exports this year may be more or less flat, export of tea, jute and jewellery sectors may clock a 10 per cent growth if the new incentives are used," he told media persons at an interactive session here on Thursday.

DUTY SCRIPS

The policy has extended export incentives under the Focus Product Scheme (FPS) to jute and tea sectors.

In the scheme, tea and jute exporters will now be eligible for duty credit scrips, allowing them to import goods without paying duties.

Duty scrips equivalent to two per cent and three per cent of the free on board (f.o.b) value would be extended to jute and tea exporters respectively. As the scrips are freely transferable, this might also translate into enhanced liquidity for the exporters, Mr Agarwal said.

A duty drawback scheme has also been extended to small gem and jewellery manufacturers. In the scheme, small manufacturers who buy gold from local markets would be entitled to refund of custom duty for the inputs used for exports.

The incentives, extended for two years, will help boost exports from the eastern region, the key region for these sectors, Mr Agarwal said.

The policy has also proposed extending FPS benefits for the export of some products originating from the North-East. While the products have not been specified, the scheme may partly compensate for the logistical roadblocks faced by industries located in the region, he pointed out.

TARGET PLUS SCHEME

The foreign trade policy has, however, failed to address key sectors such as textile, leather and handicrafts, he said, adding, "We would also like the Government to reintroduce the unrestricted target plus scheme wherein incentives are given for attaining set export targets."

India's exports have declined by nearly 25-30 per cent since October due to fall in global demands, he said. The addition of 26 new markets in Latin America and Asia-Oceania under Focus Market Scheme might help expand markets for Indian goods, he added.

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