The Hindu Business Line : Capexil chief seeks relief to sustain growth

Chemicals and allied products industry employing 11 million workers in a range of minerals and non-minerals industries including bulk minerals and ores, ceramics and allied products and plywood and products has sought immediate relief to sustain the growth of the industry and safeguard employment.

Talking to presspersons here, the Chemicals & Allied Products Export Promotion Council (Capexil) Chairman, Mr B.H. Patel, said that despite slowdown and recession in the major economies, exports of Capexil fetched Rs 56,828 crore in 2008-09 over the previous year, logging a growth of 4 per cent.

He said that while granite and natural stone exports showed a growth of 36 per cent in 2008-09, non-mineral industries that showed relatively healthy growth include animal by-products, books, publications and printing, miscellaneous products, ossein and gelatine and rubber manufactured products. He said the labour-intensive export industry churning out a whole range of minerals and non-mineral industrial products such as cement and clinkers, glass and glassware, paints and varnishes, paper and products and auto tyres and tubes would sustain a growth of 4 per cent in rupee terms this fiscal too, despite the fact that the country's overall exports were in the negative zone. However, he pointed out, that most of the items being exported by Capexil go to the US and Europe, close to 65 per cent. But, the Market Development Assistance and Market Access Initiatives funds being provided to exporters to these markets remain inadequate.

He said the cost of doing business or participating in export fairs in these countries need to be borne by the authorities if they were to retain the extant markets, as “exporters cannot sustain this add-on cost that would render their product price uncompetitive”.

Mr Patel also sought easier line of credit from the banking system as the provisos of bank guarantees and collateral security involved needs to be reasonably relaxed so that more and more small and medium manufacturers-exporters would avail themselves of the credit to do brisk business.

Mr Patel also pleaded for extension of two per cent interest subvention being given to labour-intensive export segments such as textiles, handicrafts, gem and jewellery to Capexil exporters to not only augment exports but also to help the large number of skilled and semi-skilled workers employed by the minerals and non-minerals industries across the country.

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