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Feared with serious impact on exports of value added products due to removal of benefits, textile mills have urged the government to include cotton textiles in the new Foreign Trade Policy 2015-20.
“The new Foreign Trade Policy 2015-20 has removed all benefits on exports to African countries. This has had a serious impact on exports of value added products like cotton dyed & printed fabrics and made-ups to these countries, said R K Dalmia, Chairman, The Cotton Textiles Export Promotion Council (Texprocil).
The newly introduced MEIS (Merchandise Exports from India Scheme) has allowed a duty credit scrip of 2%, 3% and 5% to export of notified products to certain specified countries.
ALSO READ: Textiles Ministry proposes cap on exportable amount of cotton
However, the scheme does not include exports of value added and labour intensive products like cotton dyed and printed fabrics and made-ups to different African Countries like Mauritania, Mali, Dar Es Salaam, Burkina Faso, Angola, Senegal, Ghana, Kenya and Tanzania which is a major blow to the exporters.
The previous policy granted duty credit scrips at 4% of the FOB (free on board) value of exports in general and in some cases it was 7%. The overnight withdrawal of these benefits on exports of cotton fabrics and made ups to African countries has put the exporters into a huge dilemma.
Africa shares only 5% in textiles exports from India. But, looking at the growth potential, adequate export benefits are required to be extended.
“The new Foreign Trade Policy 2015-20 has removed all benefits on exports to African countries. This has had a serious impact on exports of value added products like cotton dyed & printed fabrics and made-ups to these countries, said R K Dalmia, Chairman, The Cotton Textiles Export Promotion Council (Texprocil).
The newly introduced MEIS (Merchandise Exports from India Scheme) has allowed a duty credit scrip of 2%, 3% and 5% to export of notified products to certain specified countries.
ALSO READ: Textiles Ministry proposes cap on exportable amount of cotton
However, the scheme does not include exports of value added and labour intensive products like cotton dyed and printed fabrics and made-ups to different African Countries like Mauritania, Mali, Dar Es Salaam, Burkina Faso, Angola, Senegal, Ghana, Kenya and Tanzania which is a major blow to the exporters.
The previous policy granted duty credit scrips at 4% of the FOB (free on board) value of exports in general and in some cases it was 7%. The overnight withdrawal of these benefits on exports of cotton fabrics and made ups to African countries has put the exporters into a huge dilemma.
Africa shares only 5% in textiles exports from India. But, looking at the growth potential, adequate export benefits are required to be extended.
