The Hindu Business Line : Chemical exports rise 23%

Mumbai, Oct. 2 Despite the rupee appreciation causing a close to 12 per cent dip in exporter earning, chemical exports were up 23 per cent, though with incommensurate revenues, according to the Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council (Chemexcil).

Established by the Union Government, the 3200-odd member-council comprising representatives of industry, trade and government, serves as a window to showcase the country’s capability in chemical products.

Exports for 2006-07 clocked Rs 23,408 crore as against Rs 18,920 crore the previous year. Dyes and intermediates export rose to Rs 10,197 crore (Rs 7,114 crore); inorganic, organic and agrochemicals to Rs 9,633 crore (Rs 8,701 crore); cosmetics, toiletries, essential oils and agarbattis to Rs 2,494 crore ( Rs 2,171 crore) and castor oil to Rs 1,084 crore (Rs 934 crore).

Incentives

Duty drawback concessions of 3-5 per cent, though welcome, were much below the expectations of the exporter fraternity. “The Commerce Ministry has constituted a team to understand the impact of the rupee rise at the ground level and some incentives could be announced for exporters shortly,” said Chemexcil Chairman, Mr Satish Wagh.

“Given the impact the rupee appreciation has had against the dollar, some exporters are attempting to shift transactions to the rupee, but the effort has not materialised so far,” said Ms Smita Samanth, Executive Director.

commercial products

The chemicals industry is probably one of the most diversified of all industrial sectors covering more than 70,000 commercial products. The Indian chemicals industry is in the midst of a major restructuring and consolidation phase. With shift in emphasis on innovation, brand building and environmental compatibility, the industry is slowly moving towards greater customer orientation, said Ms Samanth.

In terms of consumption, the industry is its own largest customer and accounts for about 33 per cent of the consumption.

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