The DGFT through a Notification No. 30/2015-2020 dated 1st September 2020 has clarified that the MEIS scheme will be discontinued after 31st December 2020. EPCH has appealed to the Hon’ble Union Minister of Commerce & Industry, Shri Piyush Goyal to let the scheme continue even after 31st December 2020 for the handicrafts sector since the current Covid crisis has resulted in the decline of exports of handicrafts by (–) 66.83% during the 1st quarter of the current financial year 2020-21 and it is estimated that handicraft sector may suffer to the tune of approximately Rs 8000 – 10000 crores in this financial year, said Mr. Ravi Passi, Chairman- EPCH.
While elaborating further, Mr. Passi said any discontinuation of the scheme at this juncture would make products uncompetitive as the sector won’t be able to compete with the machine made items from China and South East Asia on the pricing front. The Government’s relaxation given under unlock -1,2,3 and 4 has led to the resumption of some business activity and exports are beginning to take place, however, the discontinuation of the scheme after 31st December will be a major blow to the already suffering handicrafts sector.
Shri Rakesh Kumar, Director General EPCH, said that it is a very important benefit which the handicraft sector as a priority sector used to get from the Government and in the past has motivated the exporters to enhance exports to all parts of the world. It is important that during the current pandemic crisis, the incentive is continued so that the exporters who suffered extensively may get the time to recover and contribute towards the clarion call given of the Hon’ble Prime Minister of India for ‘AtmaNirbhar Bharat’.
Merchandise Exports From India Scheme (MEIS) was introduced in the Foreign Trade Policy (FTP) and was launched as an incentive scheme for the export of goods. The rewards are given by way of duty credit scrips to exporters. The Exporters of handicrafts also avail the benefit under MEIS scheme as handicraft sector has been accorded priority under the scheme informed Mr. Rakesh Kumar, Director General, EPCH.
