From the Desk of Chairman

“Wishing a Very Happy, peaceful & healthy New Year”. The year 2014 was one of the most challenging & very successful years for Carpet Export Promotion Council (CEPC) which witnessed heavy turnout of overseas buyers, resulting in tremendous business in both the flagship Expositions of India Carpet Expos during the year 2014.


I complement all my Fellow Exporters for showing good performance amidst dwindling and changing economic scenario. Handmade Carpet exports have again registered consecutive impressive growth of more than 20% in the last year.


In 2014, we had full support of the Government and export incentive measures announced included expanding interest subvention as well as increasing the corpus on the Market Access Initiative (MAI), Market Development Assistance (MDA). Additional plan allocations for MAI / MDA will help in export marketing with formation of an Export Development Fund with sizable corpus for aggressive marketing. We thank the Govt, value the continued support offered to carpet sector. But perhaps much more is still required to be done as assured by the Hon’ble Prime Minister & Union Minister of Textiles. My wish-list for the handmade carpet sector also requires complementary efforts from Govt for the procedural simplifications in the existing policy paradigm, if our handmade carpet sector has to perform much better.


Friends, I would like to inform you that the New Drawback Rates meet Exporter’s Expectations. A quick analysis of the new All Industry Rates of Drawback effective from 22nd November 2014 shows cosmetic changes in the rates, and you may see the product wise rates in the January issue of Carpet Council News Magazine.


As before, the drawback rates have been determined on the basis of certain broad average parameters including, inter alia, prevailing prices of inputs, input output norms, share of import in input consumption, the applied rates of central excise and customs duties, the factoring of incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods, factoring incidence of duty on HSD etc, value of export goods etc.


Many items already covered under the Drawback Schedule prior to incorporation of erstwhile DEPB items, shall see a change in the AIR. In continuation of a transitory arrangement, for the items incorporated in the drawback schedule from the erstwhile DEPB Scheme there is a reduction in the AIR. Drawback caps continue on most tariff items with AIRs above 2%.


Several entries have been rationalized by merging them at respective four digit level or under the respective residuary sub-heading “others”. Tariff item numbers have seen a change in many cases;


The six digit tariff item (TI) under 5705 have been changed to refer to the composition of fibre as under other four digit tariff items. Further, all caps have been made on the basis of per instead of earlier per kg (for some items) in the chapter 57.


Separate entries have been created distinguishing certain export products such as knotted / tufted woolen / fine animal hair carpets containing 15% or more by weight of silk (TI 5701, 5703). The new rates effective from 22nd November, 2014 and can be seen in DBK section in this issue. We have put a comparative chart with last year’s rates for the information of the member exporters.


I would like to mention that in order to continue the Development, Growth and Export Promotional activities, export target of Rs 7600 Crores (USD 1260) fixed by the Ministry of Textiles, for the fiscal year 2014-15, which the Council has already achieved. I must also congratulate that Carpet Exports is growing @ 19.07 (April 2014- Dec 2014 –DGCI&S figures) The economic slowdown did affect our growth for a while, and just as we thought we were coming out of it, comes the news of more uncertainty, particularly in the major advanced markets of USA and the EU. There were floods in J&K region. This is bound to affect our exports during the crises. While we thank the Government for supporting exporters all along, we seek their continued support to tide over this difficult phase and help us in our endeavors to become a major player in the world economy. We are waiting for announcement of new EXIM Policy for the period 2015-20 which might be announced in the new fiscal day.


On behalf of Committee Of Administration of CEPC, I assure all of you that The Carpet Council will take up all the long pending issues of the sector to increase participation in DOMOTEX and China; To explore participation in various expos / exhibitions in new markets such as Latin American Countries, South East Asian Countries, South Africa, China and Russia and so on.


We do have many export promotion activities during the remaining period of the fiscal year 2014-15 to increase our exports. These include participation in International Trade Fairs (a few of which are –Décor Show at Singapore, 29th Edition of India Carpet Expo at New Delhi, DOMOTEX Asia China floor 2015 at Shanghai etc.


The Council has also started providing trainings to artisans for weaving hand-knotted and hand-tufted carpets under Mega Cluster for Carpets in Mirzapur-Bhadohi-Varanasi Carpet Belt, for the welfare and upgradation of of handmade carpet weavers, artisans, and small entrepreneurs of the hamlets of these areas. In the hamlets of Jayapur in Varanasi distt, our training centres are running successfully and to the fullest satisfaction of the trainees and Gram Pradhan. We are trying our best to increase the number of training centres in all the hamlets of Mirzapur-Bhadohi-Varanasi Carpet Belt in due course of time.


I urge all of you to take the opportunity to avail the platform provided by the Council and participate actively in these events including in trainings, and I am sure, which will help increase exports to these existing markets and tap newer ones.


I am confident that Government and the Carpet Export Promotion Council will work in close partnership to not only improve consumption of its products in the country, but also enable our country to be the preferred destination for Handmade Carpet products.


I look forward to interacting with you through my messages here and through interactions at various meetings, seminars, workshops, Expos and Events that we organize. Needless to add that without your active participation, feedback and constructive criticism, we will not be that much effective.


If any member would like to submit an article of public interest to be printed in Council’s Newsletter, please mail the material to the Editor, Carpet Council News magazine at its E-mail address:


With best wishes and hoping for our continued interactions.


With Kind Regards,