TEXPROCIL welcomes revised duty drawback rates

The Cotton Textiles Export Promotion Council (TEXPROCIL) today welcomed the government's announcement of revised duty drawback rates, hoping it will give a boost to exports of cotton textiles.
"The revised drawback rates will certainly give a boost to exports of cotton textiles as they will provide adequate neutralisation of the incidence of duties and taxes on the export goods and make them more competitive in the international markets," TEXPROCIL chairman R K Dalmia said in a statement here.
The drawback rates and caps have been increased for made-ups both made of cotton, as well as cotton blended with manmade fibre. This is a step in the right direction as it will promote exports of value-added products in line with the stated policy of the Government, Dalmia said.

The drawback rates and caps for different types of cotton yarns have by and large been retained with no significant reductions. This has come as a major relief to the spinning sector which is currently under severe pressure due to various reasons, he said.
However, Dalmia pointed out that there should have been some increase in the drawback rates for fabrics as India is fast emerging as a manufacturing hub for these items.
Government is also keen to promote investments in the weaving sector, the chairman added.
Further, un-rebated state levies should also be refunded through the drawback route for yarns, fabrics and made-ups as in the case of apparels, Dalmia added.