As the rupee is becoming stronger against US dollar and has started pinching the exporters in the country, the pharmaceutical exporters in the country have asked the Union Commerce Ministry to interfere in the matter to save the exporters. They have urged the Commerce Ministry to direct the Reserve Bank of India (RBI) to concede some concessions in the interest rates on export packing credits.

The Pharmaceutical Export Promotion Council (Pharmexcil) president Dinesh Modi met Union Commerce & Industry Minister Kamal Nath in New Delhi in this regard and asked the Minister to interfere in the matter immediately as the exporters are being adversely affected due to the rupee becoming stronger against the dollar. The Pharmexcil asked the Commerce Minister to direct the RBI to reduce the interest rate on export packing credits. "Such a move will offset the huge losses to the exporters in the wake of stronger rupee against US dollar," Modi said.

Modi said the Commerce Minister's response to the suggestions was very positive as he was also seized of the issue.

The Pharmexcil has also asked the Commerce Minister to include Russia in the list of Focus Markets recently announced by the Minister. In the Exim policy supplement announcement on April 19, though some of the CIS countries were included in the Focus Market, the pharma exporters were surprised due to the non-inclusion of Russia in the list. Extension of Focus Markets to CIS and some other countries including some Latin American countries was a long-standing demand of the pharma exporters in the country.

The objective of the Focus Market Scheme is to offset the high freight cost and other disabilities to certain select international markets with a view to enhance the country's competitiveness to these countries. This scheme allows duty credit facility at 2.5 per cent of the free-on-board value of exports of all products to the notified countries.

The Pharmexcil has also asked the Commerce Minister to extend the income tax benefits to the export oriented units (EOU) till 2013which otherwise would expire on March 31, 2009.

Meanwhile, the Pharmexcil has welcomed the annual supplement to the Exim policy announced by Union Commerce & Industry Minister Kamal Nath on April 19. The extension of DEPB scheme till 2008 March and the removal of service tax have gone down well the pharma exporters. "It is an overall good policy and there is positive trend," Modi said tersely.