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Experts call raw cotton export duty, ill-advised move
Apr '10
The apparel industry of India is delighted with government's proposed decision of suspending duty concession on cotton yarn exports and imposition of heavy duty on raw cotton exports.

However, as per the spinning industry entrepreneurs this decision would obstruct the growth of industry. Stating it as the measure aimed to control the amplifying price of cotton yarn, the knitwear garmenting sector hailed the decision taken by the government.

Experts from the spinning sector, allege that, the government is troubling the spinning industry, which is the only organized sector in the textile value chain, instead of taking efforts to improve the competence and efficiency of the other sub-sectors in the value chain. The policies are more supportive for a particular sector of the industry and are not proper, they add by saying.

Mr J. Thulasidharan, Chairman of the Southern India Mills Association (SIMA) called these decisions as an ill-advised move, offering the reference of the suspension of 7.67 percent Duty Entitlement Pass Book (DEPB) benefit, which had been available for cotton yarn export.

Fibre2fashion News Desk - India

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