• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai , Feb. 17

THE downward revision of duty entitlement pass book (DEPB) rates by three per cent to five per cent on synthetics textile items, effective February 9, will result in cash loss to the exporters and adversely affect the exports, according to Mr Rakesh Mehra, Chairman of Synthetic and Rayon Export Promotion Council (SRTPC).

Usually, after the annual Budget, the DEPB rates are revised from April 1. Moreover, the normal production cycle for textiles items meant for exports is around 80 days.

Taking these two factors into account, the export community had already contracted shipments until March 31, 2004, based on the old DEPB rates. Thus, any sudden downward revision in rates would result in huge loss to exporters, since they cannot re-negotiate the prices with buyers, Mr Mehra said.

"The total exports during the period from February 9 to March 31, will be roughly Rs 1,000 crore. The cash loss to exporters will be around Rs 30 crore to Rs 35 crore," he said.

He added that the margins were already under pressure due to steady strengthening of the rupee against dollar and the intense competition in the international market.

Mr Mehra has urged the Government to reconsider the DEPB rates in a realistic manner and to revise them appropriately upwards with effect from April 1, 2004.

The stability of the Exim Policy and its provisions over a period of time are essential for long-term planning by exporters and any sudden changes, especially that of DEPB rates would severely disrupt the plans of exporters, he added.

More Stories on : Textiles

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Greenspan faces flak on jobs

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line