Export subsidy on various handicrafts items including shawls, scarves Kolhapuri
chappals have been increased by two per cent with immediate effect an official
release issued on May 2 said.
Office of Director General of Foreign Trade has enhanced the MEIS rates on
handicrafts items from 5 to 7 per cent. The items include Attars,
Candles, Jewellery Boxes, Wooden Frames, Statutes, Handmade Paper, Handmade
Lace, Shawls, Scarves, Kohlapuri Chappals, Bangles, Glass Artware, Article of
Brass, Aluminium, etc.
the midterm review of the Foreign Trade Policy 2015-20 which was announced in
December 2017, MEIS incentive on certain handicraft items was enhanced by 2 per
cent but there were many other handicraft items which were left out.
O.P. Prahladka, Chairman-EPCH had met Mr Alok Vardhan Chaturvedi, of Director General of Foreign Trade and
raised various issues which included enhancement of MEIS rates on handicrafts
also pleaded for amendments in Duty Free Imports of essential embellishment,
trimmings, tools and consumables; exemption from payment of IGST on DFIC;
Clarity and modification in import of wood species; deletion of upper limit on
e-commerce transaction; issuance of eBRC for small transactions etc. The
DGFT gave a patient hearing to all the issues and assured all possible help in
welcomed the decision of the DGFT and said that it will help the handicrafts
exporters to recover some of the input cost involved in production of
handicrafts and would also encourage them to have competitive pricing and
increase its share in exports. He further said that the other issues
which were taken up during the meeting would also be addressed in the days to
Rakesh Kumar, Executive Director, EPCH said that the sector was awaiting this
much needed inventive and would go a long way in giving fillip to the sector.
This will also help in arresting the downturn in exports that the handicrafts
sector has witnessed in 2017-18.
exports of Handicrafts have shown a decline in exports by (-) 6.05 per cent in
rupees terms and is at Rs 22916 crores and by (-) 2.30 per cent US Dollar terms
and is at 3555.40 million US dollars during 2017-18.