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Exporters facing lot of challenges, difficulties regards exports from Kashmir: KCC&I  

By INS Desk , in Regional Srinagar , at August 24, 2021

Srinagar: The  Kashmir Chamber of Commerce & Industry   led by  its President Sheikh Ashiq Ahmad and. Farooq Amin had an interaction with Parliamentary Standing Committee  for  development of Handlooms, Handicrafts and welfare measures for the Weavers and Artisans in the Union territory of Jammu & Kashmir and Parliamentary Standing Committee on “ Augmenting Infrastructure Facilities to Boost Exports from J&K at  SKICC.

As per a statement, the following points  were discussed:

  1. Exporters are facing lot of challenges and difficulties as regard to exports from Kashmir region is concerned. As we are at the fag end of India without logistic support as still we have no dry port with the result export goods reach Delhi with higher fare rates resulting losing the competition at international level. So freight subsidies be given to exporters from Jammu & Kashmir as they can’t compete with others who are close to ports. Kashmir has a geographical disadvantage in logistics in respect of road transport. In order to increase export and make our products competitive in the international market, there is need to subsidize freight  both air and road.
  2. State and Centre Government must come  up  with the  attractive schemes  so  that  our  entrepreneurs / new educated / unemployed youth will attract towards  this Export Industry.
  3. All handmade items should be exempted from taxes like GST. To preserve the livelihood of Weavers, Artisans, Traders, Exporters who are involved in handmade Handicraft and also the famous art of Cottage Industry, the GST must be waived off on Pashmina Shawls, Carpets, Papier Machie, Crewel, Chain Stitch, Wood Carving.
  4. Union Territory Government must come up with  Special  Schemes for Exporters  based on their performance / turnover basis. Government should declare Special Scheme in which  10% incentives be given to the exporter  yearly  on performance / turnover basic to encourage the exporters and boost Kashmir  Handicrafts.
  5. Those Silk Carpets which contains more than 60% silk should be given 7% incentives in RODTEP Scheme to encourage and boost Silk Handmade Carpets in Kashmir.
  6. There should be a separate ITC (HS) code for Pashmina Shawls and verified by the competent testing laboratory.  No capping should be placed on Pashmina Shawls or other value added handicraft items under RODTEP Scheme.
  7. Government should give all the benefits to Kashmir Handicrafts  and declare it as Special Economic Zone.
  8. Warehousing Facility at  International Airport.
  9. The Department connected with the Exporters such as Banks, ECGC, DGFT do not provide the required awareness to the exporters.
  10. Government must promote Carpet Village/City in Sumbal, Sonawari were where we have more than 20,000/- Artisans / Weavers available be identified as Modal  Carpet Village which is already existing as per Industrial  land bank availability. 200 Kanals of land should be initially  provided  to manufacturers / exporters  in an organized way  and Stake Holders should be asked to apply  online and submit relevant DPR as per their  capacity.

Infrastructure with this Carpet Village/ City should  be fully supported  and incent-wise  in the form of 90:10 due to the present  situation of carpet business in Kashmir. This Carpet Village should be installed with all Common Facility Centers wherein Design Development, Dying, Washing, Bank Facilities, Packing. To promote this Carpet Village wherein Carpet Manufacturers/ Exporters will come out with the new innovations and designs to cater the International Market.

  1. To give incentives  like Export Subsidy to Silk Handmade Carpets which are exported  at a 10% from Jammu & Kashmir region as per Government Order No: 54-IND of 2020 Dated: 10-03-2020(Jammu and Kashmir Wool Processing, Handloom, Handicraft, Policy-2020). As the declining of exports is worsening  every year. It  is   requested  to   issue Public  Notice  for  the above said Incentive  given in the Policy so that   manufacturers  and exporters  get encouraged .
  2. Government must give support to the present manufacturer / exporter to sustain in this present turmoil as most of the accounts are either stressed or turned NPA’s .
  3. 100% Freight Subsidy from Jammu & Kashmir to the relevant ports should be reimbursed  as we are at the fag end of India.
  4. Office of the Jt. Director (DGFT):- Till few years back the office at Srinagar was being manned and managed by Joint Director (DGFT) and our problems  and needs were being well attended thereby solving the said problems expeditiously. Unfortunately now the office is being held  by a junior officer which results in  undue delay in solving  of the problems. It is  requested  that a Joint Director General  be posted at Srinagar permanently.
  5. The Kashmir Chamber of Commerce and Industry has felt the need of having  Expo Marts  for Handicrafts products   and Carpets were we can Exhibit  our products to International Buyers.

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