<p></p><p>Cashew exporters want Director-General of Foreign Trade (DGFT) to take up with the Finance Ministry the issue of a Reserve Bank of India circular on foreign currency forward bookings. The RBI circular to banks providing export credit said that all forward currency bookings by exporters and importers should fully be on deliverable basis. Any exchange gain from the forward booking, in case of cancellation of an export order, should not be passed on to the exporter.</p> <p>Cashew exporters submitted before the DGFT that single product exporters faced a big disadvantage as their only hedge against currency fluctuation was forward booking. Multiple-product exporters might not be affected by the RBI directive because credit availed for a particular shipment could be set off against another immediate shipment. </p><p>Alternatively, the exporters have suggested that forward foreign currency bookings and cancellation be allowed for exports and imports. They also submitted that the depreciation of the rupee was a result of the current international economic scenario and not because of speculation by the exporters. Exporters have also sought benefits, in addition to the current incentive, under Vishesh Krishi Gram Udyog Yojana for value-added products such as roasted and salted cashew. The exporters’ submission is that the share of value-added products in exports from the country is limited. </p><p>Value-added products accounted for just `.16 crore out of the total export earnings of `.2,700 crore during 2010-11, they said. Additional 2 per cent incentive under VKGUY would help encourage long-term investments in value addition, they added. </p><p>Another issue that was taken up by cashew exporters at their meeting with the DGFT was that of withdrawal of Market Development Assistance (MDA) for participation in fairs and delegations abroad. The exporters said that for a small export council such as theirs with a membership of 200 plus, MDA was important. </p><p> </p><br><p></p>