"The DEPB rate reduction will have a very adverse impact on home textile exporters' margins for the U.S.
"The DEPB is being phased out at a time when it is needed the most," said P.
With a cutback on the DEPB incentive, exporters like Doshi are looking to the government for an alternative incentive program.
The DEPB is a policy wherein the import duties paid by exporters on their inputs are refunded in part by the government.
Doshi said a number of exporters were used to selling at cost, and the duty refunds under the DEPB scheme provided the margins for them.
The subsidies offered by the Indian authorities include aid for industries in Export Processing Zones (EPZ) or Export Oriented Units (EOU), the Duty Entitlement Passbook Scheme (DEPB
), the Income Tax Exemption Scheme (IES), the Advance Release Orders scheme (ARO), and the Maharashtra Government's Package Scheme of Incentives (PSI)...JJ:(LC)
In addition, the Minister said, the department of commerce is also facilitat-ing promotion of export of various com-modities, including handloom textile through implementation of duty entitle-ment passbook (DEPB
) scheme, focus market scheme, focus product scheme, marketing development assistance scheme (MD) and market access initiative scheme (MAI).