SENSEX NIFTY
Nov 23, 2011, 11.03 PM IST | Source: PTI

Industry demands imposition of export duty on guar seeds

Industry demands imposition of export duty on guar seeds

Mumbai, Nov 23 (PTI) With the prices of guar seed and gum going up by 300 per cent in a year and exports at an all-time high, the exports federation has urged the Government to withdraw export promotion incentives and impose export duty on guar seeds. "Following a good crop this season and huge export demand, guar seed and gum prices have shot to all-time high of Rs 4,688 per quintal this year as against Rs 1,800 per quintal last year," commodity trader Rajesh Sharma told PTI here. India also enjoys monopoly in guar trade with export revenues of nearly Rs 3,000 crore. "Recently China introduced import duty on guar gum powder and splits. If India considers imposition of export duty, countries like China would be forced to roll back duty on guar gum and the benefit would accrue to India," former president of FIEO (Federation of Indian Export Organisations) Ganesh Gupta said here. The withdrawal of incentives and imposition of export duty would result in a substantial revenue generation and saving to the exchequer, Gupta said. The government can realise revenues of about Rs 1,250 crore with a 20 per cent duty on guar derivatives exports and further save about Rs 375 crore it is currently doling out as incentives, which put together is a sum of Rs 1,625 crore, Sharma said. (MORE) PTI AP VKV

ADS BY GOOGLE

video of the day

Retail buyers, MFs are back; midcaps hold promise: Ambit

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.