The Hindu Business Line : Sops to exporters

The Centre’s announcement of sops for exporters by way of Customs duty and service- tax exemptions to provide relief to them (Business Line, November 30) is welcome.

Measures such as reduction in the basic Customs duty on polyester filament yarns and polyester staple fibres from 7.5 per cent to 5 per cent and on man-made filament yarns such as acrylic, viscose, and so on, from 10 per cent to 5 per cent are, no doubt, right steps in the right direction.

These will bring down prices of the finished products and stimulate demand for them in the export sector.

But, at the same time, it is imperative that the Government thinks about workers who have lost their jobs due to decline in export orders in industries such as leather, handicrafts, and so on. Since there is no social security scheme in India to help the cyclically unemployed labourers, the Central and the State Governments could (in addition to these measures) think of purchasing the entire stock from companies whose exports have declined and release the funds to foot the salary bill of the workers instead of showing them the door.

The governments which do not have resource constraints unlike private entrepreneurs, can store the stocks and sell them when the rupee stabilises and the situation becomes conducive for exports.

S. Ramakrishnasayee Ranipet (TN)

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