Not a good time

The hike in petrol and diesel prices will hit exports. Already plagued by huge capital stuck due to hurdles caused by the goods and services tax, exporters are keeping their fingers crossed over the government’s move to raise prices. 

Exporters are not interested in accepting new orders as there is hardly any profit in transactions; hence, overseas buyers are placing their orders with neighbouring countries.

The government’s move is unwarranted as it comes at a time when international oil prices are low and rupee appreciation has brought down prices of buying oil from other countries. Prices of oil in neighbouring countries are about 50 per cent less than those in India.

The government is only concentrating on widening the tax base, mopping up tax collections and levying higher excise without considering the trade impact, especially exports. None of the recent government steps seems to be alleviating the problems of exporters or the common man.

A Sathyanarayana   New Delhi 

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