Welcoming the new duty drawback rates, the Cotton Textiles Export Promotion Council (TEXPROCIL) said the revision will boost the exports of cotton textiles. The government of India has increased the duty for cotton yarn from 1.2 per cent to 1.7 per cent, from 1.3 per cent to 1.6 per cent for cotton fabric and from 2 per cent to 2.6 per cent for made-ups.
“The revised drawback rates will lead to increase in the exports of cotton textiles. There is a significant increase in the drawback rates for cotton made ups which will encourage export of value-added products like home textiles,†said TEXPROCIL chairman Dr KV Srinivasan while extending his gratitude Smriti Zubin Irani, Union Textiles Minister, for her support in getting the drawback rates increased.
The removal of drawback caps in the case of those export products where the drawback rates are less than 2 per cent will benefit the cotton textiles exporters, he added.
Further, Srinivasan has also urged the government to increase the MEIS rate for fabrics from 2 per cent to 4 per cent and also to cover cotton yarn under the MIES and 3 per cent interest equalisation scheme so that exports of cotton textiles can achieve its true potential.