Reserve Bank of India's (RBI) recent move to hike key lending rates, exporters have once again raised the pitch for reintroduction of interest rate discount scheme.
However, the government maintains that it is not likely to happen soon as it needs time to work on the funding requirement to sustain the high-cost scheme.
Acknowledging the fact that export credit costs were rising, a Commerce Department official said they had already started calculating their fund requirement for handing out subvention to exporters.
In this regard, the Department will have to prepare a list of the beneficiaries on the basis of matching the amount required with the funds available with the Finance Ministry. With regard to the need to provide interest rate discount, the official, while conceding that it certainly was on the radar, said it would take some time.
Exporters deem that frittering away time in taking such decisions impacts product pricing and could result in loss of potential buyers.
Accusing the government of not understanding the competitiveness existing in the marketplace, a senior official of the Delhi Exporters Association pointed out that even a one per cent difference between the price quoted by them and the competition was enough to cost them their customers. According to him, it is imperative to be aware of one's own costs as it could go a long way in helping quote the most competitive rates.
Apprising about the Association's plan to meet the Finance Secretary soon, the official said he would try to convince him on the issue and ask for an early announcement of the subvention scheme.
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