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Drawback rates need to be restored - Texprocil

25 Jun '09
6 min read

Sir, during the past two decades, Indian textile industry was receiving credit at the interest rates at par with the Agriculture sector. It is necessary to bring back the policy of providing credit to the textile sector at par with the Agriculture sector. Besides, some of the banks are not providing the benefit of interest rate subvention to the textile sector.

Other issues such as the need of having a “Stable Fibre Policy”, drawback and unrebated State Levies will be discussed by our Vice Chairman.

Sir, I would like to bring to your notice that the Cotton Textiles Export Promotion Council is one of the oldest EPCs established in 1954, just after independence, and has over 4000 members. Other Councils such as AEPC and PDEXCIL emanated from Texprocil due to growing importance of garments and powerlooms. Upto 2005, our Council was working as an extended arm of the government to administer Quotas. Since 2005, the Council is fully engaged in trade promotion activities, deepening trade ties with importing countries and protecting interests of Indian exporters in global markets.

In the medium term, it is necessary to grant liberal assistance to exporters under the MDA/MAI export promotion schemes which would help Indian exporters broad base their market reach.

Interests of textile sector have been neglected in the past when we entered into various Free Trade Agreements. In the next six months, we are going to have FTAs with EU and South Africa including finalisation of the India-Mercosur PTA to operational level. We need to take care of the importance of textiles so that we can get enhanced market access with lower tariffs. As an export promotion body, we are willing to provide any assistance while negotiating and framing any trade agreement as far as textiles is concerned.

In the long run, it is necessary to create a fund for establishing global brands. We had these types of schemes in the past too.

Sir, we are the market leader in exports of cotton yarn to about 30 countries with over 70% market share. We are facing safeguard and anti-dumping action in some of these countries. Our council has proactively taken up these issues with countries such as Peru and Egypt and succeeded in protecting India's interests.

Sir, I would like to bring to your notice that it costs a lot to the Council to defend in these international proceedings and therefore request you to provide us liberal assistance. Simultaneously, the government also needs to maintain a constant vigil in countering protective moves if any, undertaken by the importing countries.

Dear friends, on account of the forward looking policies of Shri Maran as the Union Minister for Communication & Information Technology, Indian IT sector has scaled new highs. Along these lines, I am confident that under his able guidance, Indian textile industry will be able to regain its glory.

The Cotton Textiles Export Promotion Council

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