Government has been cautious not to get overjoyed over 32% export growth in the first quarter of 2010-11 and maintained the equilibrium in retaining most of the stimulus and concessions offered to the export based industry through FTP to enable it to stand on its feet. DEPB has been extended up to 30-6-2012, continuation of interest subvention for handicraft, handloom, MSME sectors and inclusion of leather, textiles, Jute sectors as well in the interest subvention Pre-shipment, Post shipment Scheme, retention of Status Holder incentive, thrust on South-South trade through Special Market Focus Product Scheme, introducing annual EPCG authorization scheme to reduce filing of multiple EPCG authorization, etc , it is hoped, would provide impetus to export growth.
Duty Drawback will be seperately announced within a fortnight by Department of Revenue. There is a tremedous amount of hope and hype, that the DDB rates may get bigger to enable the export industry to sail through the rough weather of diminishing orders.
Coconut industry which has been included in Vishesh KrishiGram Udyog Yojana, Spl Focus product schemes, Focus Market Scheme, Market Focus Product Scheme, 3% EPCG Scheme, Duty drawback and Duty Entitlement Pass Book Scheme, was able to effect an export of Rs 180 Cr growth during the first quarter of 2010-11 against Rs 80 Cr in the first quarter of last year, which is a significant improvement. The Commerce Ministry added minor Coconut products for inclusion like Oil Cake, Coconut shell unworked under VKGUY and Coconut hookah under Special Focus product Scheme during a slight revision exercise it undertook on 12-1-2010.
In the amended edition for 2011-12, Packaged Coconut Water, Coconut shell worked, oil cakes have been brought under VKGUY eligible for a duty scrip benefit of 5%. Virgin Coconut Oil is expected to be included when the Government take a decision regarding making Free, the prohibitive clause in export of food products and oil products, as domestic availability and inflation has been blocking its release for exports.
It has been largely due to our pressure that Palm Oil which has been enjoying nil Customs duty is likely to be brought fewer than 20% Customs duty slab for Crude and 27.5% for Refined Palm Oil. The impact of Customs duty will steady the Coconut oil market domestically. The ruling price of palm oil is Rs 4,400/- per quintal while Palm kernal oil is rs 5,600/- per quintal. Coconut Oil is avilable at Rs 5,850/- per quintal while one quintal of Copra is quoted at Rs 3,950/-. With the customs duty tagged on, Coconut Oil will seize price advantage, and would be able to stabilize its growth over a period of nine to one year, if the conditions stay as it is.
Activated Carbon (under 3802) which constitute 50% of Coconut exports, has not been included in any of the Schemes for benefit.However, chemicals and allied sectors, rubber has been considered weaklings and provided arm comfort through inclusion in the 'bonus’ to the export schemes. While handicrafts(Barmer), textiles(Bhiwandi),leather(Agra) have been included in App-7 of the HBP,Vol I, Pollachi which has a growing export town for 'Coir and coconut' products fetching around Rs 450 cr exports was not considered for TEE tag. By allowing Natural rubber to be imported into India at 7.5% import Customs duty against 20%, feeble support is given to Rubber products by bringing them under VKGUY, is not going to augument Rubber-4 price favourably. Kerala's other sectors, unfortunately only status quo has been provided . CSEZ has turned out a commendable export performance of over Rs 15,000 Cr, yet nothing has been granted special to CSEZ. Inspite of Government promoting Latin America as an emerging economy, trade between India and Latin America continues to be sober. Is it 'trade lag'?
Marine products have been given some concessions and extra considerations. But largely, sagging Kerala based export sectors have been left high and dry to nag without solace and/or comfort.
Commerce Ministry is hopeful of attaining a target of US $ 200 billion this year. Hopefully, yes.
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