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Govt declares 5% duty incentive on cotton exports
18 Feb '09
1 min read
The Directorate General of Foreign Trade in a notice put up on its website mentions that a 5 percent duty incentive is available on exports of raw cotton, effective from April 1, 2008 till June 30, 2009.
This has been made possible by including raw cotton under the Vishesh Krishi Gram Udyog Yojana (VKGUY). This scheme has been launched for the promotion of exports mainly farm produce.
Experts have ridiculed this move of the government by saying that it would be equivalent to subsidizing cotton purchased by other competitor countries like China, Pakistan and Bangladesh from India.
As it is cotton production figures are expected to drop by 9.94 percent in the current cotton season and touch 29 million bales (1 bale=170 kg) instead of the 32.2 million bales projected by the government in October last year.
This decision of the government has invariably pushed up prices of the white gold as had been suggested by experts. In early morning trades on February 18, cotton prices zoomed by Rs 250-300 per candy (1 candy=356 kg) in the Gujarat cotton markets.
This has been made possible by including raw cotton under the Vishesh Krishi Gram Udyog Yojana (VKGUY). This scheme has been launched for the promotion of exports mainly farm produce.
Experts have ridiculed this move of the government by saying that it would be equivalent to subsidizing cotton purchased by other competitor countries like China, Pakistan and Bangladesh from India.
As it is cotton production figures are expected to drop by 9.94 percent in the current cotton season and touch 29 million bales (1 bale=170 kg) instead of the 32.2 million bales projected by the government in October last year.
This decision of the government has invariably pushed up prices of the white gold as had been suggested by experts. In early morning trades on February 18, cotton prices zoomed by Rs 250-300 per candy (1 candy=356 kg) in the Gujarat cotton markets.
Fibre2fashion News Desk - India
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