Home / Knowledge / News / Textiles / SIMA hails govt decision on Duty Drawback
SIMA hails govt decision on Duty Drawback
Nov '15
The Southern India Mills' Association (SIMA) has hailed the Central Government's decision for considering its pleas and enhancing the drawback rates and value caps for various value added products such as yarns counts in 100s and above, fabrics with less than 200 grams per sq.mtr, knitted and woven garments.

On November 16, the Central Government notified the Schedule of revised All Industry Rates of Duty Drawback effective from 23rd November, 2015

In a press release, SIMA Deputy Chairman, P Nataraj said the attractive rates given for certain value added products would encourage the textile industry to focus more on value addition which would generate more foreign exchange. He said that there is a marginal reduction in the normal products, both in the drawback rates and value caps, which could have been avoided considering the crisis being faced by the industry.

Nataraj pointed out that the revised rate also encourages the industry to follow the Cenvat route to prepare the industry for the GST when it comes into force. He said that when the exports opt for cenvat facility, they would get enhanced rate and value.

The SIMA Deputy Chairman said has that for the first time three count groups have been given for yarn based on the request made by the Association so that the value added yarn producers would get better compensation under duty drawback system.

For example, spinning mills in South India account more than 90 per cent of superfine count yarn exports (100s and above) and such yarn is eligible to get Rs 25.60 per kg as drawback value as against the previous value of Rs.18.00 per kg. Similarly, the woven grey fabric with less than 200 grams per sq metre were earlier given Rs 37 per kg and now the revise rate is Rs.40 per kg.

However, for the fabric above 200 grams per sq metre, the value cap has been steeply decreased from Rs.37 to Rs.19 per kg. The drawback rate for cotton garments have been increased from 7.5 per cent to 7.7 per cent and value cap has been increased from Rs.75 per kg to Rs.103 per kg. In the case of cotton made ups, the value cap has been reduced from Rs.71 to Rs 70 per kg while the rate has been increased from 7.1 per cent to 7.3 per cent. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search