Restore export benefits for cotton yarn: CITI chairman
Confederation of Indian Textile Industry has requested government to restore export benefits under focus market scheme.
Reacting to a recent notification No.43(RE-2013)/2009-2014 dated September 25th issued by Directorate general of Foreign Trade (DGFT) withdrawing these benefits on certain products including cotton yarn, Prem Malik, chairman CITI observed that there is no export restriction or export duty on cotton yarn.
""There is only a requirement of registration of export contracts with the DGFT which is only for the purpose of data collection on exports. Thus, withdrawing the export incentives on the ground that there is restriction on export is incorrect in this case,"" he added.
Malik stated that cotton yarn is an industrial product and its production has been increasing substantially in the country. Since the domestic demand has not kept pace with the increasing production, there has been a decline in cotton yarn prices in the domestic market in recent weeks. He stressed that India is the most competitive yarn producer in the world at present and therefore there are increasing export opportunities opening up for our cotton yarn.
Referring to the urgent need to bridge the capital account deficit, chairman, CITI observed that textile products, including cotton yarn, have increasing demand in the overseas markets and it will be logical to encourage export of cotton yarn from the point of view of bridging the CAD, in addition to creating additional employment.