Export prices
A report was published in a local English daily on June 8, focussing on problems faced by our exporters due to declining prices overseas. It is an oft-repeated scenario in our export trade. Meanwhile, prices of whatever we import go on rising steadily! For example, in the last six months, oil prices have nearly tripled, but has oil consumption increased in the same ratio over the last six months?
This is possibly the result of underhand secret manipulation between the
Arabs and the Jews who between them control over seventy percent of global crude oil production and sale. No wonder, no one is bothered about the Palestine issue, except for lip service, while Israel quietly goes on gobbling Arab land wherever possible!
The whole oil scenario stinks of underhand dirty political bargains and counter bargains. Unlike the EU and the US, all the Middle East Muslim states are in a muddle; with divide and rule and endless quarrels as their state policy! They have not till date managed to have a comprehensive policy to safeguard their common interests. This has resulted in the creation of Arab and Jew Trade Lords (as distinct from warlords), a new breed of cartels and syndicates, with one purpose-- corner the international energy and fuel market!
Compared to this, our exporters are toddlers in the world market. But for us, export trade is our life or death, economically and as a corollary politically! We must persist doggedly for export volume expansion.
The government must adopt long-term support policies in this matter, on priority basis, ignoring the prospect of having some rich and wealthy export based merchants in our trade scenario. In the long run, it will be for our common good.
Meanwhile, our exporters must concentrate on productivity and energy efficiency as their key objective. In this connection, the government must allow enhanced depreciation, or soft loans for the replacement of energy inefficient plants and equipment in all export based industries and subsequently for export substitution industries. This option should be available for all manufacturing industries that do value addition to local raw materials, with different level of benefits for the export and home markets. The top priority should be the agro-based industries that support our agriculture.
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