The Hindu Business Line : Rupee appreciation: Exporters may get relief

“issue is very complicated as we have to factor in many other aspects involving the RBI. The Government is keen on addressing the issue and is considering various options.”

Our Bureau

Hyderabad, June 27 The Union Government is considering “some form” of relief to the exporters in the wake of recent appreciation of rupee in the international market, according to Mr Pawan Kumar Bansal, Union Minister of State for Finance.

Speaking at the inaugural session of ‘India-Latin America and Caribbean (LAC) International Pharma meet’, being organised by the Pharmaceutical Export Promotion Council (Pharmexcil) here on Wednesday, Mr Bansal said his Ministry was examining the recommendations forwarded by the Ministry of Commerce.

“The issue is very complicated as we have to factor in many other aspects involving the Reserve Bank of India. However, the Government is keen on addressing the issue and is actively considering the various options. The rupee appreciation would not be an impediment to exports,” the Minister said.

India and LAC countries share many aspirations and there is a greater scope in the pharma industry for bilateral trade and joint ventures, he said.

Packing credit

Mr D.B. Mody, Chairman, Pharmexciel, said the Union Commerce Ministry had accepted Pharmexcil’s request on providing packing credit at a concessional rate of interest, hike in DEPB rates and interest on Export Earnings from Foreign Currency (EEFC) accounts.

“Now the issue has been taken up with the Finance Ministry and the Prime Minister. We request Mr Bansal to support us in this regard,” he added.

Currently, the interest on packing credit (pre and post shipment) is at 10.5 per cent while the DEPB rates vary from 14 per cent to 17 per cent depending on the product. On EEFC accounts, a nominal dollar rate interest at around 2 per cent is being offered. The Pharmexcil had sought a minimum of 1.5 per cent hike in DEPB rates to mitigate the impact of very high transaction costs involved in the export, according to Mr Mody.

Dr M. Venkateswarlu, Drug Controller General of India, Mr G.S. Sandhu, Joint Secretary, Department of Chemicals and Petrochemicals, Mr Rajiv Kher, Joint Secretary, Department of Commerce, and others also spoke.

The three-day meet is being attended by over 50 industry representatives from LAC region and over 200 industry experts from across the country.

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Rupee appreciation: Exporters may get relief