From the Desk of Chairman

It is high time that few realize the adverse impact of duty discrimination prevailing within Textiles Sector, which is one of the strategic and labour intensive sectors. The duty bias has been one of the factors discouraging the Indian handmade carpet sector to attain its potential production and growth in exports. Few hope bold policy initiatives will be taken by the Government to boost growth of this sector. Otherwise, the Indian Handmade Carpet Industry will not be able to sustain and give way to countries like China, Iran and Turkey to march past India.

 

Despite various problems hampering the exports of Indian Handmade Carpet industry, the Council on its part is making all out efforts to promote the sector by involving export promotion activities abroad as can be seen at our Annual Action Plan listed on the following pages. As you are aware, Latin America and others has emerged as the major emerging markets for handmade carpet and the Council has lined up exclusive Exhibitions in these markets. The Council is venturing in these countries for the first time and I am sure exporters will take advantage of this opportunities.

 

It is heartening to see that the Government is taking a slew of initiatives for encouraging exports, these include many steps in ease of doing business and broadening the Merchandise Exports from India Scheme (MEIS). As per the extended MEIS, from May 4 onwards all 5012 products covered under MEIS are eligible for global coverage irrespective of the export destinations and the market coverage for 2787 MEIS lines have been extended to all countries. It is also encouraging to note that that the DGFT has removed the restrictions under the Incremental Exports Incentivisation Scheme (IEIS), and this would help process the cases by the regional authorities without imposing any cap, unlike the earlier stipulation of restricting the entitlement to 25 per cent growth or incremental growth of 10 crores in value, whichever was less. The above twin policy initiatives along with various steps like doing away with landing certificates etc taken for ease of doing business by the DGFT will give the needed fillip to exports of Handmade Carpets. These innovative steps would encourage exporters to cover new destinations and thereby helping reverse the declining trend of exports

 

You are aware that the All Industry Rates of Duty Drawback for various products including Handmade Carpets are reviewed every year after announcement of Union Budget, taking into account the budgetary changes in Customs & Central Excise duties and service tax. The Council has recently received a communication from the Directorate of Drawback, Department of Revenue. Govt of India, asking for the data for revision of DBK rates for 2016-17. You are aware that it is necessary to provide comprehensive, representative and verifiable data to the DBK Directorate so as to get DBK rates and cap value commensurate with the duty incidence. I would request all members to provide the cost data along with all supporting documents in the prescribed format immediately to the Council. Also any procedural issues concerning product classification in DBK Schedule may also be sent to the Council.

 

I also call upon all the Members of CEPC & take pleasure in sharing the information about CEPC’s “CSR Activities for Skill Development on Hand-Knotted & Hand-Tufted Carpet Weaving” to train artisans in Mirzapur-Bhadohi-Varanasi Carpet Producing Belt. As on 31st March 2016, CEPC has trained 1956 trainee weavers in Bhadohi-Mirzapur Mega Cluster for Carpet weaving in its 120 training centres in 163 batches. List of trained weavers has been shared with all the concerned for utilizing the services of CEPC trained weavers on providing fruitful employment to them. We have been told by the Govt that no fresh skilling will be taken up until all the skilled weavers are placed in wage or self employment.

 

I would like to share with my carpet fraternity that with the help of the DC (Handicrafts), we have organised two days Seminars and Workshops at Srinagar and Jaipur and further organising in Sikkim, Panipat, Jaipur, Varanasi and Agra. We have also started Technical Training Programs to impart trainings on weaving of Hand Knotted Carpets i.e. 3 Centres each at Jaipur & Dausa in Rajasthan; 3 centres each Panipat (Haryana) and Agra (U.P.); two each at Odisha, Chandigarh and Jharkhad.

 

I thank members, who have renewed their membership of the Council for the year 2016-17 and request those who have not yet renewed their membership to send their renewal fees at the earliest to enable the Member exporters to continue to avail various export services and facilitations extended by the Council. We have already sent you the subscription memo for renewal of your membership for the year 2016-17 and would be glad to renew your membership.

 

With Kind Regards,

KULDEEP RAJ WATTAL

Chairman