The Hindu Business Line : Shellac exporters urged to look at higher value addition

CONSIDERING the impressive targeted growth of 31 per cent in export of shellac & lac based products, at Rs 150 crore (for 2004-05), there is an urgent need to now look at high value addition in this sector. There is no room for complacency and the stress has to be on cost competitiveness and constant value addition.

Speaking at the awards presentation function, for 2003-04, of the Shellac Export Promotion Council (SAPC) here, Mr E.V.K.S. Elangovan, Union Minister of State for Commerce & Industry, said shellac was a traditional export item in which the country had considerable expertise, and more sophisticated uses for the value added product from India will have to be explored to create a niche in the world market. "We need to re-define Indian lac products in the global arena for long-term export growth."

The Minister said the future success of shellac-based products would depend entirely on value-added derivatives. He stressed on best shellac cultivation practices, as it directly benefited the tribal population in the Jharkhand and Orissa belts, where sticklac is found. Urging exporters to take full advantage of the incentives in the proposed new Minor Forest Produce scheme announced in the foreign trade policy, he said there was an urgent need to re-invent the traditional part for a global presence.

Assuring full Government support, Mr Elangovan urged SAPC to dream big, even though it was a small export promotion council. The council should now concentrate on the focus countries to boost exports. During 2003-04, the SAPC achieved an export figure of Rs 130 crore, an increase of 29 per cent over that in the previous year (Rs 101 crore). It is actually aiming for a higher export figure of Rs 150 crore by 2006.

Highlighting the Vision Plan, Mr P.K. Saraogi, Chairman of SAPC, said the council would works towards achievement of plans for annual production of sticklac to 30,000 tonnes in the next 5 years. Pointing out that the share of value added items need to go up to 40 per cent of the total exports in the next five years against the 20-25 per cent at present, he said the need of the hour was to promote Indian lac as an identifiable brand and as a natural, environment-friendly product.