Home / Knowledge / News / Textiles / Dip in cotton yarn exports a matter of concern: TEXPROCIL

Dip in cotton yarn exports a matter of concern: TEXPROCIL

25
Oct '19
Pic: Shutterstock
Pic: Shutterstock
Exports of cotton yarn from India declined by a sharp 38.8 per cent during the first six months of the current fiscal 2019-20, which is a matter of deep concern, The Cotton Textiles Export Promotion Council (TEXPROCIL) has said. Exports to leading markets such as China, Bangladesh, Vietnam, South Korea, Colombia and Turkey have dropped significantly.
 
India's cotton yarn exports fetched $1.276 billion in April-September 2019, compared to $2.086 billion in the same period of the previous year. In fact, cotton yarn exports have registered a negative growth in all the months since April 2019.
 
Further, exports of value added products such as fabrics and made ups have grown only by a marginal 1.87 per cent in the current fiscal. This combined with a lukewarm domestic demand has further aggravated the situation for the cotton yarn spinning sector. As a result, many of the spinning mills are reportedly on the verge of closure which may cause unemployment, TEXPROCIL chairman Dr. KV Srinivasan said in a statement.
 
"Cotton yarn is the only product which has not been granted export benefits such as MEIS & 3 per cent Interest Equalization Scheme. In addition, exporters of cotton yarn are at a serious disadvantage vis-a-vis competing countries due to differential import duties in leading export markets. There is an import duty  ranging from  3.5 per cent to 5 per cent on cotton yarns imported from India  into major markets like China, EU, Turkey and South Korea as against imports from competing nations like Bangladesh, Cambodia, Pakistan, Indonesia and Vietnam  which enjoy the benefit of zero duty in these markets," Srinivasan said.
 
Cotton yarn also bears the incidence of Central and state taxes on inputs which are not being rebated as in the case of made ups and garments. This has got an adverse impact on its competitiveness in the export markets.
 
"Cotton yarn is also a value added product with substantial value addition taking place within the country and its exports need to be encouraged," said Srinivasan. He also pointed out that only about 27 per cent of the total production of cotton yarn is being exported and there will not be any shortage of cotton yarn in country both for export and domestic production if exports increase.  
 
He appealed to the government to include cotton yarn under the MEIS, 3 per cent Interest Equalization scheme and the ROSCTL ( Rebate of State Levies & Taxes ) scheme  so that exports of cotton yarn can increase and achieve its true potential which in turn will benefit the cotton farmers.
 

Fibre2Fashion News Desk (RKS)


Interviews View All

Smarth Bansal, Colorjet India Limited

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Office bearers, Textile industry

Office bearers
Textile industry

There might be negative impact on garment exports

Headhonchos, Textiles & allied industry

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Cem Erdogrul,

Cem Erdogrul

Turkey-based Temsan Air Engineering is one of the leading manufacturers of ...

Harsh Shah,

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

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

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2019

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

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search