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Exporters seek separate ministry, level playing field

Dubbing the Exim Policy 2002-07, announced on March 31, as unrealistic and impractical, exporters on Wednesday demanded formation of a an exclusive ministry for expeditious disposal of import and export- related issues.

Under the Special Economic Zone scheme, a major thrust area of the policy, the government has announced facilities like exemption of compulsory negotiation documents through bank, 100 per cent retention of foreign exchange in EEFC account, enhancement of repatriation period from 180 days to 360 days, rebate for neutralising high fuel cost and transport subsidy.

But all these facilities have been reserved for about 3,000 "status holder" exporters leaving 147,000 others high and dry, said S P Agarwal, president, Delhi Exporters Association.

Why there should not be a level-playing field for all exporters, if the government wanted to achieve the export target of one per cent share of the global trade by 2007, he questioned.

He was even optimistic that if preferential treatment was extended to all exporters, India can achieve a target of upto five per cent.

The exporters also doubt the viability of the SEZs and fear it may turn out to be a pipe dream project instead of being an export facilitator.

Agarwal sees no difference between 100 per cent export-oriented units or export promotion zones and why the stakeholder in these areas should switchover to SEZs.

The past Exim policies have been more import-oriented rather than export-oriented. This is the first time that an export-oriented direction has been given and exporters welcome the same, he said and added that the policy still leaves many unanswered questions without, which it will not be able to achieve its objective.

DEA president said the removal of quantitative restrictions meant nothing for the exporters as at present there are no restrictions on export of handicraft, carpet, fashion jewellery, leather goods, engineering goods and other products. The restriction was only on commodities.

He suggested all small-scale industry-sector towns like Moradabad, Agra, Bhadohi, Aligarh, Saharanpur and Jaipur be given the facilities at par with SEZs.

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