These types of industries require more flexible import formalities. The existing time schedule of five years is not adequate. The EPCG scheme, therefore, has to be liberal, so as to provide extended time for fulfilling export commitments. The Chamber has said several companies are experiencing a continuous falling trend in prices of their export products in the global market. This is leading to lower price realization in dollar terms.
Indian exporters are therefore unable to meet their export obligations.
Due to over-capacity of various items, many South East Asian countries have been resorting to dumping of these products in the global market, adversely affecting India's export efforts. The Chamber has, therefore, suggested extension of time to genuine exporters for the third block period expiring in 2001 and also extend total export obligation period by 4 years from 8 years to 12 years for fulfillment of export obligation in case of EPCG licences.