Handicraft exports promotion body EPCH today urged the Centre to initiate speedy GST refunds, enhance incentives like duty drawback and continue rebate on state levies as measures to boost outward shipments, which it said declined over 5 per cent in rupee terms in 2017-18.
In a statement, the Export Promotion Council for Handicrafts (EPCH) said the sector, which grew around 10 per cent in the last 9 years, has registered a decline of 5.59 per cent in rupee terms and 1.8 per cent in US dollar terms.
The body attributed the decline to factors like the blockage of working capital on account of GST roll out, economic slowdown in traditional markets of handicrafts like UK, Germany, Japan and UAE, rise in prices of raw material like metals (copper, brass, aluminum) and reduction in the duty drawback rates based on feedback from exporters.
EPCH chairman O P Prahladka said the council has taken up the matter with Ministry of Textiles and Ministry of Commerce and urged them to initiate the process of streamlining speedy refund of GST, enhance incentives like duty drawback, introduce Rebate on State Levies (RoSL) for Handicrafts sector.
He said the Council has also sought inclusion of merchant exporters in Interest Equalization Scheme, expansion in the list of items in Duty Free Import Scheme, facilitation of export proceed realisation for exports to Iran and setting up of warehouses in Latin American markets and CIS countries, besides increase in allocation of funds under the Market Access Initiative scheme.
EPCH Executive Director Rakesh Kumar said it is important that the handicraft exporters are incentivised and bottlenecks hampering the export growth are addressed by the Government so that the sector which has steadily registered exports growth can again bounce back.
Export of handicrafts during the year financial year 2017-18 ended March were to the tune of Rs 23,029.36 crore with an overall decline of 5.59 per cent in rupee terms.