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SIMA hails extension of 2% export benefit under MEIS
31 Oct '15
3 min read
The Southern India Mills' Association (SIMA) has welcomed the amendment of 2 per cent export benefit under the Merchandise Export from India Scheme (MEIS) permitting the export of fabrics and man-made fibre spun yarns to leading markets such as African countries, the Middle East, Sri Lanka and Bangladesh.
Earlier, the benefit was confined only to to exports to countries in Group A and Japan in Group B and Bangladesh and Sri Lanka in Group C for fabrics. In the case of manmade fibre spun yarn, the benefit was extended only to countries in Group A and Japan in Group B. Now the benefit has been extended to all countries in Group A, B and C for both fabrics and manmade fibre spun yarn. In the case of made-ups and garments, the benefit was extended to all countries in Group A and only Japan in Group B. Now the benefit has been extended to all countries in Group A and B.
In a press release, SIMA Chairman M Senthilkumar said that this amendment has come as a relief to the textile industry which is under severe stress and is struggling with excess production capacity, particularly in the spinning sector.
“Cotton yarn also could have been included as the highly capital and labour intensive spinning sector is under more stress when compared to other segments. The relief given to the manmade fibre spun yarn might slightly increase the exports and help the spinning sector to certain extent,” he said.
Senthilkumar also said that the domestic demand for yarn might slightly improve if the fabric and other value added product exports increase taking advantage of the benefit.
The SIMA chief appealed to the Government to expedite the announcement of interest subvention for all textile products which is under consideration for the last one year.
In recent times, the Indian textile industry has been facing one of the worst ever crisis in its history due to slow down in the global market for textiles and clothing, regional FTAs that reduced exports from India due to tariff barriers, expensive cotton and manmade fibre price when compared to the international price, undue delay in disbursement of TUF subsidies, etc.
The industry had been demanding to extend additional incentives under MEIS and also 3 per cent interest subvention for export of all textile products till the Indian textiles and clothing exports reach their potential growth rate and a level playing field is created in the open market. (SH)
Earlier, the benefit was confined only to to exports to countries in Group A and Japan in Group B and Bangladesh and Sri Lanka in Group C for fabrics. In the case of manmade fibre spun yarn, the benefit was extended only to countries in Group A and Japan in Group B. Now the benefit has been extended to all countries in Group A, B and C for both fabrics and manmade fibre spun yarn. In the case of made-ups and garments, the benefit was extended to all countries in Group A and only Japan in Group B. Now the benefit has been extended to all countries in Group A and B.
In a press release, SIMA Chairman M Senthilkumar said that this amendment has come as a relief to the textile industry which is under severe stress and is struggling with excess production capacity, particularly in the spinning sector.
“Cotton yarn also could have been included as the highly capital and labour intensive spinning sector is under more stress when compared to other segments. The relief given to the manmade fibre spun yarn might slightly increase the exports and help the spinning sector to certain extent,” he said.
Senthilkumar also said that the domestic demand for yarn might slightly improve if the fabric and other value added product exports increase taking advantage of the benefit.
The SIMA chief appealed to the Government to expedite the announcement of interest subvention for all textile products which is under consideration for the last one year.
In recent times, the Indian textile industry has been facing one of the worst ever crisis in its history due to slow down in the global market for textiles and clothing, regional FTAs that reduced exports from India due to tariff barriers, expensive cotton and manmade fibre price when compared to the international price, undue delay in disbursement of TUF subsidies, etc.
The industry had been demanding to extend additional incentives under MEIS and also 3 per cent interest subvention for export of all textile products till the Indian textiles and clothing exports reach their potential growth rate and a level playing field is created in the open market. (SH)
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