Indian Wool Have Urged The Centre to Hike Comprehensive Duty Drawback Rates

Indian wool item producers have urged the Centre to hike comprehensive duty drawback rates by minimum five percent.
 
The rate of duty drawback, meaning refund of import duty on raw material, presently fluctuates between 4 percent to 10 percent on an extensive range of wool and woollen items.
 
As EU and the US, two of India's key wool exports markets are hit by recessionary pressures, Wool and Woollens Export Promotion Council (WWEPC) feels it would be difficult for wool exporters to meet wool export target of US$ 750 million set for the current fiscal, unless the Central Government initiates steps like raising the duty drawback rates by minimum five percent.
 
India's wool and wool blended exports to the EU and the US plummeted by 14 percent year-on-year, in dollar terms, during the first quarter of the current fiscal, mainly due to slowdown of demand from the recession hit EU and US markets, and on account of exchange rate fluctuations.
 
In rupee terms, wool and woollen product exports from India plummeted by 5 percent year-on-year from Rs. 1.299 billion in April-June 2011-12 to 1.122 billion in first quarter of the current fiscal.
 
Last fiscal, India's exports of wool and wool blended items increased to US$ 512.12 million compared to exports worth US$ 441.18 million a year earlier.
 
Aiming to boost exports, WWEPC took part in four global trade fairs in different countries during the current year. It also concluded an ambitious global export promotional programme.