Capping of MEIS benefits for exporters at Rs 2 crore to seriously affect traders: FIEO
Business Bureau ;
THE Government’s decision to cap export incentives under MEIS scheme at Rs 2 crore per exporter on outbound shipments made during September-December, 2020 is going to “seriously” affect traders, Federation of Indian Export Organisations (FIEO) said on Wednesday. Federation of Indian Export Organisations (FIEO) President Sharad Kumar Saraf said exports that will be made during September-December, 2020 are based on the orders, which have already been negotiated much earlier, factoring the existing Merchant Export from India Scheme (MEIS) benefit.
These benefits are part of the export competitiveness and therefore the sudden change will affect the exporters' financially as buyers are not going to revise their prices upward, he added. “However, the sudden imposition of a cap of Rs 2 crore per IEC (Import Export Code), on MEIS benefit of exports made during September 1 to December 31, 2020, is going to seriously affect exporters, whose numbers may not be very large, but their contribution to exports warrant a revisit to the imposition of the cap,” Saraf said. He also expressed concern over the financial outlay of Rs 5,000 crore given for exports during September-December, 2020 with the condition that if claims exceed this limit, the ceiling may further be revised downwards.