Agri Business

Upasi urges Govt to continue export incentive schemes

Our Bureau Kochi | Updated on August 17, 2020

The United Planters Association of South India (Upasi) has urged the Ministry of Commerce and Industry to continue Merchandise Export for India Scheme (MEIS) to push export earnings and increase foreign currency till a new scheme is in place.

The exporters are in a difficult time due to Covid-19 pandemic and the resultant contraction of export orders. The sudden stoppage of MEIS export incentive will add further misery to the existing distress situation, said RM Nagappan, president, Upasi.

The MEIS module in the DGFT website is not accepting new applications for uploading claims and shipping bills from July 23 for the Let Export Orders [LEO] from April 1. This, he said, was initiated to limit the issuance of any more MEIS scrips, causing hardship for the smooth functioning of export operations.

He hoped that Upasi's request will be considered and necessary direction will be issued.

The plantation commodities exports need to be supported, as the sector is at a competitive disadvantage compared to other exporting origins due to infrastructural inefficiencies and other associated costs. The benefits of MEIS for plantation commodity exports was 5 per cent and was reduced to 3 per cent from January 1. For a sustained growth of exports, there is a need for policy continuity and any measures like this will have far reaching implications and may result in losing out our established markets, he said.

Further, this will have implications on the Government’s vision of doubling agricultural exports by 2022 as per Agricultural Export Policy, he added.

Published on August 17, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor