The Hindu Business Line : `DEPB rate cut unwarranted'

TEXTILE exporters are perturbed over the Government's decision to slash the Duty Entitlement Pass Book (DEPB) rates by 45 per cent. According to them, this will deal a severe blow to textile exports.

"The Government's stand to bring down the DEPB rates on pretext of recovering the sops offered to textile industry in the last budget was unjustified and untimely," Mr Rakesh Mehra, Chairman, Synthetic and Rayon Textile Export Promotion Council (SRTEPC), told presspersons here on Saturday.

While demanding a roll back of DEPB rates, he pointed out that 45 per cent reduction was unwarranted as customs duty on inputs remains unchanged and the value addition in view of increasing prices of petroleum products has actually gone down.

The Indian Silk Export Promotion Council, the umbrella body of silk exporters, is also hoping that the Finance Minister would reconsider his decision on silk — a textile excluded from any kind of benefit in the last budget.

"Silk industry is totally unorganised and silk exports largely constitute tiny cottage sectors. Any reduction in exports will make exports uncompetitive," said Mr Uday Sirnaik, Assistant Secretary, ISPEPC.

The powerloom and handloom sector, constituting 60 per cent of the overall production of fabrics, also voiced its concern.

"Exports constitute 35 per cent of power and handloom industry production. Declining exports on account of reduction in DEPB rates would affect these sectors considerably. It is therefore, necessary to ensure that such a situation does not develop," Mr Senthil Kumar, Chairman, Powerloom Development Export Promotion Council, stated in a release.

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