Exports sop: EEPC to pursue Pranab

Economy Bureau
Posted: 2008-08-08 00:59:14+05:30 IST
Updated: Aug 08, 2008 at 0059 hrs IST

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Kolkata, Aug 7 : lending rate and the government, on March 2008, lowered it by another 2% so that exporters can tide over the appreciating rupee, which was leading to losses.

Shah said if an exporter's working capital is 25% of his total turnover, then his exporting cost goes up by 0.75% the with sops withdrawn. This makes engineering goods exporters, already hit by increased input costs, more uncompetitive in the international market.

Officials said the finance ministry is adamant that at the time of soaring oil and fertilizer subsidies, which adds up to Rs 170, 000 crore (Rs 100,000 crore and Rs 70,000 crore oil and fertilizer subsidy, respectively), the government cannot meet the exporters demand. But by withdrawing export sops, the government saves less than Rs 500 crore, which can by no means tide over the oil and fertilizer bills....