The Hindu Business Line : AEPC wants Govt to accept EU offer

EVEN as the Commerce Ministry is yet to respond to the recent offer of the European Union (EU) for additional quota to Indian exporters, the Apparel Export Promotion Council (AEPC) has counselled the Government to accept the offer with immediate effect to compensate the dwindling profit margins plaguing the exporters in the light of rupee's appreciation against the dollar.

In a letter to the Union Commerce and Industry Minister, Mr Arun Jaitley, the AEPC Chairman, Mr A. Sakthivel, has drawn attention to the European Union's recent offer to augment the quota limits to India against New Delhi binding the tariffs at 20 per cent.

While this meant that the extant applicable rates are not be raised in future, it also implies that the specific duties which are already very high would also need to be brought down in line with the EU demand. This, however, would not pose any problem.

Mr Saktivel said this issue was discussed in greater details at the Council's meeting held at Jaipur recently with the members unanimously pleading with the Government to go ahead with the EU proposal so as to take the additional quota as allocation, which would make India almost quota-free from the date of signing the memorandum of understanding in this regard.

He also drew attention to the current phase of appreciation of the rupee as a sequel to which the export revenue is dwindling. Hence, acceptance of EU offer would impart a head start in the EU market with exports in the current year itself being set to go by around Rs 4,000 crore.

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