Annual Trade Policy To Be Declared On April 19

New Delhi: In the backdrop of a strengthening rupee, which is affecting exports and fuelling imports, Commerce Minister Kamal Nath will declare the annual supplement to the Foreign Trade Policy on April 19. The policy is likely to increase the scope of many existing export promotion schemes, such as the Focus Product, Focus Market as well as Vishesh Krishi and Gram Udyog Yojana. Duty free scrips of 5 per cent is granted against freight on board value of many farm products under the Vishesh Krishi and Gram Udyog Yojana. Exporters are granted duty free scrips of 2.5 per cent of the freight on board value of products like handloom and leather, in the Focus Product Scheme.

Nath is also likely to formally declare the extension of the Duty Entitlement Pass Book Scheme by one more year. Exporters could also look forward to relaxation of obligation norms under the Export Promotion Capital Goods Scheme. Trade analysts will be keenly observing the export aim set by the government for 2007-08. The aim of exports for 2006-07 was set at $ 125 billion, which is likely to be missed as exports in the period between April to February of the current financial year was only $ 109.12 billion. Worried by the adverse effect of a strengthening rupee on exports, Nath will meet exporters to find a solution. The increase in rupee is affecting the exporters and the matter has been brought to our notice.