They also clamoured for immediate intervention of the Reserve Bank of India to abate the Indian currency.

Federation of Indian Export Organisations (FIEO) President Ganesh K Gupta said the RBI should not only intervene directly in the foreign exchange market to support the falling dollar but also cut the interest rates to check the foreign fund flows.

“We want immediate intervention by RBI,” he said. Besides checking overseas fund flows, a cut in the prime lending rate (PLR) would reduce exporters’ cost of borrowing. “The advantage of pre-shipment and post-shipment credit at 4.5 per cent below PLR has been offset by the increase in the benchmark interest rates,” he said.

Stating that the Centre has not implemented the package for exporters announced in June this year, he said, “The announcement remained on paper and arrears of increased Duty Entitlement Pass Book (DEPB) and drawback have not been given to exporters.”

He also demanded extension of recently notified service tax waiver to transport of goods from factory to container depots. Nasscom too called upon the Centre to extend tax benefits under Software Technology Park of India (STPI) scheme for another 10 years. “One step that will send a positive signal to the industry and investors is the extension of tax incentives by 10 years under the STPI scheme,” it said in a statement.

Relief measures
Meanwhile, fearing loss in export revenues due to appreciating rupee, pharmaceutical exporters have asked the government to extend relief measures to the sector similar to those being extended to nine select industries.

Pharmaceutical Export Promotion Council (Pharmexcil) has sought relief measures such as higher DEPB rates and 6 per cent concessional rate on post- and pre-shipment credits to all exporters. Likewise, domestic iron ore miners, stating that their export revenue has slumped by about Rs 1,000 crore owing to rupee appreciation demanded abolition of export duty on the mineral to offset the losses.

“We seek immediate abolition of export duty to enable us offset the losses sustained,” Federation of Indian Mineral Industries (FIMI) President Rahul N Baldota. He said imposition of export duty coupled with rupee rise against the US dollar has served “double whammy” to miners and could lead to further trouble if no succour was provided to them.

However, Indian Steel Alliance, contesting the iron ore miners’ claims, said rising iron ore prices, both in domestic market and internationally, would definitely offset their losses.