| For the eight months from April to October, synthetic and rayon exports were down 15 per cent at Rs 5,004 crore compared with Rs 5,953 crore in the same period last year. |
| The slide in export volumes was corrected in August, even registering positive growth over the next two months. But in November the figures have again slipped into the negative. |
| "Unfortunately, the uncertainties still remain," says a player. Experts expect the trend to remain the same in the rest of the year, though the numbers will improve. "With exports to the US and Europe increasing, the overall decrease will be around five per cent," said sources. |
| Though the segment-wise figures for November have not yet been tabulated, industry experts say man-made yarn and fabric export will show a bigger dip than man-made staple fibre. |
| Exports had shown a continuous downfall since the beginning of the year till August. The main reason, say sources, was the uncertainty among exporters regarding the reduction in the duty entitlement pass book (DEPB) rate. |
| The rate decides how much local duties and cess, such as excise duty and mandi cess, the government reimburses to exporters. |
| "If the DEPB rate is high, our products are competitive in the international market. Otherwise the products are high priced and lose out to other international players. Thus the fall in exports," said sources close to the industry. |
| The rates were reduced and later "corrected". However, the government now proposes a new scheme which it claims will be broad-based. "But the scheme is unclear and the government is yet to announce details," said sources. |
| Another area of discord is the issue of export earnings being exempted from income tax under 80 HHC. Cases have been filed against a few exporters and recovery notices have been sent. |
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