The Apparel Export Promotion Council (AEPC) has urged the Centre to immediately increase the duty drawback rates for apparel exports to offset the losses being incurred by exporters due to appreciating value of the rupee.
The council wanted the drawback rates to be increased from the present level of eight to 10 per cent to at least 13.25 per cent on the ground that the rupee has already strengthened by 10 per cent and the industry, financial institutions and experts were expecting it to further go up to 12 to 15 per cent in the next few weeks.
In a letter to the Deputy Chairman of the Planning Commission and ministers and secretaries for finance, commerce and textiles, AEPC Chairman Rakesh Vaid said textile exporters in China had been able to offer a much better price for their products in the global market since the Government there had increased the drawback refunds from 11 to 17 per cent over the past one year.
Noting that the rupee is now quoting at 46.10 a dollar against a level of 51.23 in March, resulting in 10 per cent less realisation for the exporters, Mr. Vaid said that keeping this trend in view, the industry had finalised exports during August and September at a rate of 48.50 a dollar.
