KCCI team meets Economic Advisor, MoC; submits 4-point action plan

Srinagar, Dec 15: In a follow-up meeting to their prior engagement with Union Minister Piyush Goyal, the President of the Kashmir Chamber of Commerce & Industry (KCCI), Javed Ahmad Tenga, accompanied by Treasurer Zubair Mahajan and Executive Committee Member Lateef Ahmad Bhat, had a meeting with Reenu Lata, Economic Advisor at the Department of Commerce, Ministry of Commerce & Industry, in New Delhi on December 14, 2023.

According to a media statement issued to Ziraat Times, the session underscored the pressing need for advancements in various trade-centric matters critical to the Kashmiri economy. According to KCCI, the following issues were highlighted to be addressed to strengthen the business environment in Kashmir:

1. Establishment of Pre-export Pashmina DNA Lab:

Topmost on the agenda was the establishment of a Pre-export Pashmina DNA Testing Lab in Srinagar or Delhi, where over 95% of Pashmina is manufactured. The urgency for this lab stems from its accreditation requirement with NABL and the Wildlife Department, essential for customs clearance to avoid export delays and seizures. Despite on-the-spot orders from the Commerce Minister earlier in March 2023, delays in establishing the lab at IICT, Srinagar, as promised, remain a cause for concern.

2. Urgent Need for ICD at Srinagar:

The KCCI emphasized the long-standing demand for an Inland Container Depot (ICD) in Srinagar to streamline the movement of export cargo, particularly critical given the burgeoning international demand for Kashmiri handicrafts, horticulture, agriculture, and other indigenous products. Although the Commerce Minister had promptly ordered its establishment upon learning of its non-existence, little progress has materialized since.

3. Rectifying ROSCTL Policies:

Issues surrounding the Reference of State Central Taxes Levies (ROSCTL) on woollen and Pashmina shawls were raised. Despite Jammu & Kashmir’s renowned expertise in handcrafted woollen and Pashmina shawls, the current policy’s cap of Rs. 438 for exports is disproportionate to the actual product costs, affecting thousands of artisans. KCCI strongly urged for the removal of this anomaly and proposed the allocation of a separate HSN CODE to adequately cover high-value products, ensuring deserving benefits to exporters.

4. GST Reforms for Artisanal Shawls:

The burden of a 12% GST on artisan-dependent cottage shawl products was highlighted, with a fervent appeal from KCCI to reduce this rate to a lower 5% slab. While understanding this falls under the purview of the Union Finance Ministry, the Economic Advisor was urged to consider recommending this reduction, recognizing the pivotal role of the Ministry in fostering growth and stability within the artisanal shawl and handicrafts sector.

Throughout the discussions, attention was drawn to Prime Minister Narendra Modi’s interest in promoting the growth of Kashmir Pashmina Shawls, significantly enhancing the artisans’ stature and the brand value of Kashmir at the global level, the statement added.

The Economic Advisor assured prompt resolution of the issues discussed, aligning with the directives highlighted by the Union Commerce Minister. In conclusion, President KCCI expressed gratitude for the attentive consideration and positive approach demonstrated during the session.