Export sops no balm for ailing sports industry

The sports industry has not benefited from the export sops announced in the Union Budget, as a thorough examination of these sops suggests that the labour-intensive industry is still grappling with serious problems.

"The government has waived the import duty only on five types of raw material, which are used only in small quantities. If the government is serious about reviving the industry, the need is to increase the number of items on the exemption list," said BK Kohli, vice-chairman, Sports Goods Export Promotion Council.

"Even the exemption announced in the Budget comes with a bar. This will be applicable only on imports worth 3 per cent of the FOB (Free On Board) value of sports goods exported by the manufacturer. Ideally, the limit should have been 10 per cent," he said.

He added the sports good manufacturers' were paying heavy import duty on major raw materials, even after the Budget announcements

"Exports have declined by over 7 per cent this financial year vis-vis the last financial year. The industry needs immediate attention of the government as it is not only a question of the survival of the industrial houses or the exporters but thousands of the families employed through the cottage industry," he said.

"The commerce ministry is also not advocating our cause even though ours is a labour intensive industry in which around 98 per cent of the labour is from weaker sections and the industry is in the shape of cottage industry," said SS Jolly, former chairman of Sports Goods Manufacturer and Exporters Association and former vice-chairman of Sports Goods Export Promotion Council.

To enable exporters to survive in the current international scenario when value of Indian rupee had appreciated with respect to the dollar, financing should be made available at a low interest rate and for a period of 3 to 5 years said KR Mahajan of Crimson International, a sports goods manufacturing firm