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Kochi: The All India Spices Exporters Forum (AISEF) today demanded that spices should be retained under the Vishesh Krishi
and Gram Udyog Yojana (VKGUY) and Pepper and Chillies, facing stiff competition from Vietnam and China respectively, should also be included under the yojana or under the focus group. Pepper and Chillies are the breadwinner of spice busienss and the door opener. Both these are facing lot of challenges from other aggressive producers like vietnam and china and hence should be included under VKGUY or under the focus group, Philip Kuruvilla, Chairman AISEF told reporters here.
Demanding that spices be retained under VKGUY scheme since the recent price increase in spices will not sustain for long, he said better monsoon for the current season and the present higher unit price of the spices may influence the farmers to extend the cultivation of spices to addtional areas. This may result in higher production
and resultant decline in prices, he said.
It also recommended continuation of spices under VKGUY for the fiscal ending march 2011 due to the forward contracts taken by the spices exporters. They have already suffered a financial loss of Rs 100 crore so far and by march next year would lose another rs 200 crore. (The Director General of Foreign Trade has made an amendment in the Handbook of Procedures Vol 1 (Appendices and Aayat Niryat Forms) of the Foreign Trade Policy 2009-14 by removing the spices and its
value added products from the VKGUY scheme from Aug 23 this year).
Due to this sudden change in the policy, the entire exporters who are availing these benefits have been badly affected for future
commitments they made, he said adding with the shifting of spices from VKGUY to Focus products, the net loss to the exporter is 3 per cent of the FOB value amounting to about rs 110 crore.
The forum members would also be meeting Commerce secretary in New Delhi, he said.Pti
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and Gram Udyog Yojana (VKGUY) and Pepper and Chillies, facing stiff competition from Vietnam and China respectively, should also be included under the yojana or under the focus group. Pepper and Chillies are the breadwinner of spice busienss and the door opener. Both these are facing lot of challenges from other aggressive producers like vietnam and china and hence should be included under VKGUY or under the focus group, Philip Kuruvilla, Chairman AISEF told reporters here.
Demanding that spices be retained under VKGUY scheme since the recent price increase in spices will not sustain for long, he said better monsoon for the current season and the present higher unit price of the spices may influence the farmers to extend the cultivation of spices to addtional areas. This may result in higher production
and resultant decline in prices, he said.
It also recommended continuation of spices under VKGUY for the fiscal ending march 2011 due to the forward contracts taken by the spices exporters. They have already suffered a financial loss of Rs 100 crore so far and by march next year would lose another rs 200 crore. (The Director General of Foreign Trade has made an amendment in the Handbook of Procedures Vol 1 (Appendices and Aayat Niryat Forms) of the Foreign Trade Policy 2009-14 by removing the spices and its
value added products from the VKGUY scheme from Aug 23 this year).
Due to this sudden change in the policy, the entire exporters who are availing these benefits have been badly affected for future
commitments they made, he said adding with the shifting of spices from VKGUY to Focus products, the net loss to the exporter is 3 per cent of the FOB value amounting to about rs 110 crore.
The forum members would also be meeting Commerce secretary in New Delhi, he said.Pti
Full Text RSS Feeds | WordPress Auto Translator