New Delhi, Sept 16 (KNN)  Expressing his disappointment over August 2015 export data which exhibited over 20 per cent decline, President, Federation of Indian Export Organisations (FIEO) , S C Ralhan said that the softening of the prices of the key agricultural and industrial inputs coupled with contraction in global demand were the main reasons for the decline. 

“The sharp decline in exports of engineering goods (declined by about 30 per cent), leather and leather goods (declined by about 13 per cent), apparel (declined by about 7 per cent), petroleum products (declined by about 48 per cent) and marine products (declined by about 21 per cent) contributed to the dismal performance,” Ralhan said in a release yesterday.

He further said that sectors such as gems and jewellery, pharmaceuticals and ceramics products which were showing modest growth also declined viz-a-viz their growth in July, 2015.

The FIEO president said that the main reason for decline in engineering goods seemed to be the increase in the duty on steel products without corresponding increase in drawback rate which has compelled many small exporters to opt out of their contracts.

He appealed for immediate reintroduction of Interest Subvention of 3 per cent for the export sector, release of shipping bill for claim of Merchandise Exports from India Scheme (MEIS) benefits and utilization of MEIS scrip, increase in MEIS benefit to FMS/FPS (Focus Market Scheme (FMS) Focus Product Scheme (FPS)/ level to increase liquidity at the end of exports.

In addition, the FIEO Chief suggested that the Prime Minister and Commerce and Industry Minister intervene in the matter and have immediate consultation with export bodies and leading exporters to draw a road map for exports in such a challenging time in which reaching last year’s exports’ figure looked difficult.  (KNN)