Date:28/03/2008 URL: http://www.thehindu.com/2008/03/28/stories/2008032855541900.htm

Business

Export subsidy on steel withdrawn

NEW DELHI: As a measure to control inflation and boost domestic supplies, the Central Government on Thursday suspended export subsidy under the Duty Entitlement Pass Book (DEPB) scheme on steel, while completely withdrawing the benefits on overseas sales of non-basmati rice.

While, the benefits under the DEPB Scheme have been temporarily removed for steel exports, these have been completely withdrawn for export of non-basmati rice, the Directorate General of Foreign Trade said in a public notice.

The government increased the Minimum Export Price (MEP) of non-basmati rice by a steep $350 to $1,000 a tonne, in the face of inflation shooting to about the six per cent mark. Earlier on March 5, the MEP was raised to $650 a tonne from $500 a tonne on March 5.