FIEO seeks complete ban on export of iron ore
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The Chief Guest Mr. R.S.Gujral, DGFT (centre) addressing the meet. With him are from left, Mr. V.K.Gupta, Jt DGFT, Ludhiana; Mr. Ajay Sahai, DG,FIEO; Mr. S.C.Ralhan, Regional Chairman,EEPC;Mr. Satish Dhanda, Managing Committee Member,FIEO; Mr. Amitabh Jain, Zonal Jt.DGFT; and Mr. Aswani Kumar, Dy Regional Chairman, EEPC. |
Ban on export of certain products imposed recently will be reducing our overall exports for the year by about Rs. 45,000 crore. Director General of Foreign Trade, Mr. R.S. Gujral said this while addressing an open house with exporters at Jalandhar on 5 July. The open house was organized by FIEO in association with Engineering Export Promotion Council (EEPC).
"For the last one and half years, the circumstances have not been conducive. First, the exporters faced rupee appreciation and now high inflation is affecting export production." Said Mr. Gujral. He, however, expressed optimistic saying that despite all odds the export target of US $ 200 bn. set for the current fiscal would be achieved.
Calling exports necessary for sustained economic growth and employment generation, the DGFT advised exporters to move up the value chain and export high value products to firmly entrench themselves in international market.
Conducting the open house, FIEO Director General Mr. Ajay Sahai expressed concern over high increase in international and domestic raw material prices adding to the transaction cost of exports and affecting export competitiveness. He, however, complimented the DGFT for bringing out various procedural simplifications in response to the issues raised by exporters during open houses on Foreign Trade Policy organsied by FIEO at different locations in the country.
Earlier, while welcoming the dignitaries, Mr. S.C. Ralhan, Regional Chairman, EEPC highlighted the unscheduled power cut and other infrastructural bottlenecks under which the SMEs were forced to work. SMEs are vital for economic growth and employment generation and so they deserve special attention, he said. Suggesting various measures to make SMEs more competitive, Mr. Ralhan urged for inclusion of bicycle components, fasteners and sewing machines in the Focus Product scheme.
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Speaking on the occasion, FIEO Managing Committee Member, Mr. Satish Dhanda demanded complete ban on export of iron ore to save engineering product exporters in SME sector. "Steel prices have become higher than oil prices. Phenomenal increase in steel prices is severely affecting engineering product exports." He said. In order to extricate this situation, Mr. Dhanda suggested encouraging |
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A view of the participants |
domestic use of iron ore to ensure uninterrupted raw material supply to the manufacturing sector for producing high value added products for export. "China is also restricting export of basic steel such as billets, HR/CR, etc. to ensure supply to its domestic manufacturing sector," he added.
Issues such as relaxation in maintaining average exports under EPCG Scheme, allowing further 12 months time for submitting applications after last date, allowing fuel against adhoc norms, allowing revalidation of DFIA scrip, allowing pro-rata refund of TED against part payment under deemed exports, etc. were raised during the open house by various exporters and the DGFT empathised with these issues.
