'Inverted duty structure favouring exports of raw material'

Concerned over countries like China importing coir raw material from India and exporting finished products to other countries, the MSME Ministry has suggested removal of inverted duty structure to protect the interests of domestic coir industry.
The Ministry has also sought doubling of funds for the ministry (Rs 68 crore at present) and proposes to introduce a Technology Upgradation Fund (TUF) like scheme for the coir sector.
"The inverted duty structure which is favouring exporters of raw material should be re-examined. Natural fibre exports should be not be promoted, that may reduce exports a little bit, but that will make raw material available for local industry," Coir Board Chairman and Joint Secretary in the MSME Ministry S N Tripathi told PTI.

Tripathi was here to attend the world's largest coir trade exhibition, which concluded on Thursday.
"They (China) are making mattresses and re-exporting the fibre to other countries. That is why we are producing more value-added products here," NCRMI Director K R Anil said.
The buyer-seller meet at the Coir Kerala 2015 is expected to generate business deals and export orders worth more than Rs 200 crore.

Around 170 buyers from 53 countries including the US, Russia, Africa and many European countries took part in the Coir Kerala here to explore business opportunities across the globe.
Tripathi said the ministry has sought doubling of budget so that the coir sector gets a shot in the arm.

"This year our budget is only Rs 68 crore. We want it to be doubled next year so that the coir industry gets a big boost," Tripathi said.
Under inverted duty structure, finished goods are taxed at lower rates than raw material.
"We should promote export-oriented areas like giving technology upgradation fund, lessen interest burden and give export credit guarantees," the official said.
Asked whether the Micro, Small and Medium Enterprises (MSME) Ministry has suggested these measures to its Finance counterpart for consideration in the upcoming Budget, Tripathi replied in the affirmative.