Special 3% DEPB for branded goods

the government attempts to boost branded exports of primary and processed agricultural goods by offering a special 3 per cent depb on packs of 1 kg or less. but as most of india’s major agricultural exports -— grains, sugar, pulses, spices, tea and coffee -— are unbranded and sold in bulk, this special rate may have very few takers. this incentive is unlikely to be taken seriously by food product exporters as most commodities are already enjoying a two per cent benefit. others like sugar and biscuits have a depb rate which is substantially higher, at four per cent and seven per cent, respectively. so getting an extra one per cent depb benefit does not in any way encourage an exporter into shifting to branded sales in consumer packs. selling in one kg packs substantially increases the packaging and handling costs for all traders,’ industry watchers said.