Weather Dirt under the rug
FROM
ISSUE #72 (14 DEC 2001 - 20 DEC 2001)
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The Central Carpet Industry Association (CCIA) has asked government to lower the export floor price of woollen rugs, saying that the current regulations make it difficult to compete internationally or diversify. The CCIA says the floor price, based on which producers are taxed, is much higher than the real production cost, as a result of which they have lost much of their market share to cheaper producers in other countries. The floor price of carpets last year was Rs 3,295 per sq m, while the production cost was about Rs 2,400. This year the floor price is Rs 3,537 while the production cost is Rs 1,900. The CIAA has made some recommendations on the ?right? floor price to the government.
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