With exporters raising concerns over the issue of working capital under the upcoming GST regime, the Commerce Ministry is expected to provide incentives such as enhanced interest subsidy to sectors like agricultural commodities to boost exports. The incentives could be announced as part of the foreign trade policy review, an official said.
“Currently, we are not getting interest subsidy benefits. The government should consider extending this to us besides other incentives so that we can increase rice exports,” KRBL CMD Anil Mittal said. KRBL is a leading rice exporter and sells basmati rice under the India Gate brand.
The Federation of Indian Export Organisations too said the cost of liquidity is high and the government should look to reduce that. “The ministry should look at increasing the interest subsidy and Merchandise Exports from India Scheme each by 2%,” FIEO director general Ajay Sahai said.
