Export dips again; sops today

NEW DELHI, AUG 4: Union commerce minister Ramakrishna Hedge will unveil a fresh package to boost the sagging exports which slipped by 7.9...

NEW DELHI, AUG 4: Union commerce minister Ramakrishna Hedge will unveil a fresh package to boost the sagging exports which slipped by 7.94 per cent in the first quarter Q1 of the current fiscal.

The package was finalised at an hour-long meeting between Hedge and finance minister Yashwant Sinha here on Tuesday and would be announced by the commerce minister in Parliament tomorrow. Among other things the package is also expected to announce further reduction in export credit rateAccording to the recent trade data, the exports during April-June 1998 have been estimated at 7,488.69 million which was 7.94 per cent lower than 8134.85 million recorded during the corresponding period last year. However, in rupee terms the exports was up by 4.85 per cent.

The performance during June was still worse with the exports registering a negative growth of 11.81 per cent over the corresponding month in the last year. Exports during the month are valued at nearly 2.34 billion as against 2.66 billion June 1997. Inrupee term exports were Rs 9,909.68 crore which is 4.65 per cent higher than the value of exports during June last year.

As per the available indications, the exports registered a decline from Delhi Air, ICD Bombay sea, Kandla and Vishakhapatnam ports. Exports from Bombay sea port were affected owing to the strike by clearing agents in June while Kandla reported low exports owing to the dislocation caused by cyclone. Exports of cotton yarn/fabrics, electronics hardware, transport equipment and machinery sectors continue to show negative trend. On the other hand imports during the first three months are estimated at 9.88 billion which is 3.75 per cent higher than 9.53 billion during April-June of last year. Oil imports during the first quarter are valued at 1.32 billion dollars which is 35.86 per cent lower than oil imports of corresponding period of last year, valued at 2.05 billion.

Non-oil imports during the same period are estimated at 8.56 billion which is 14.66 per cent higher than thelevel of such imports valued at 7.47 billion of last year same period. Imports during June this year are valued at 2.98 billion dollars, representing a decline of 3.78 per cent.Trade deficit during the first quarter worked out to be 2.40 billion which is substantially more than 1.4 billion recorded at the end of June 1997.The meeting to finalise the export package was also attended by the commerce secretary P P Prabhu, revenue secretary N K Singh and chief economic advisor Shankar Acharya.

The government was concerned over the poor performance in four major export segments 8211; cotton yarn and readymade garments, electronics, oilmeal and transport equipment, commerce secretary Prabhu said. Other officials did not comment on the proposed measures, but both ministers have been in favour of bringing down the interest rates on export credit.