The much-awaited Interest Rate Subvention Scheme on pre-shipment and post-shipment schemes has been approved by the Cabinet Committee on Economic Affairs last week.
The scheme, which will now be called as Interest Equalisation Scheme, will be effective from April 1, 2015 for a period of five years. It will be evaluated after three years.
"The scheme will provide the much-needed boost to exports of cotton textiles as all categories of fabrics and made-ups have been covered under the scheme", Texprocil chairman R K Dalmia said in a statement issued here.
The scheme has however excluded cotton yarns. Further, the scheme is also not made available to the merchant exporters.
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Dalmia pointed out that cotton yarn export is currently reeling under difficult market conditions, especially in China and this product should be covered under the scheme to enable yarn exporters to reduce costs and remain competitive in these difficult times.
He urged the Government to consider including cotton yarn under the scheme and also to extend the benefit of the scheme to the merchant exporters.