GEA welcomes steps to control cotton & yarn prices

15 Apr '10

2 min read

Mr.Rakesh Vaid, President, Garments Exporters Association has welcomed the decision taken by the Government to impose export duty on raw cotton and cotton waste. Mr.Vaid also welcomed the DGFT Notification regarding compulsory registration of cotton yarn exports contracts with the Textiles Commissioner Office.

Mr.Vaid also welcomed the decision earlier taken by the Government to suspend the 7.5 per cent duty concession under the Duty Entitlement Pass Book Scheme (DEPB) on cotton yarn exports to moderate the prices in the domestic market.

Mr.Vaid expressed his gratitude to the Government for the steps taken to control the rising prices of cotton yarn, which have now started yielding results as prices are being stabilized and in some cases they are declining.

The GEA President pointed out that the recent appreciation in the value of rupee against US dollar and EURO has made Indian exports uncompetitive in international markets. As the recent hardening of the rupee has reduced the profitability of exporters, a careful assessment and close monitoring of the exchange rate should be undertaken by the RBI to ensure that financial flows do not adversely affect the exporters, he said.

Mr Vaid said the slow economic recovery in western markets has not resulted in increase of apparel exports out of India. The global economic recession has made importers price-sensitive. At the same time, input and transaction costs of Indian exporters have increased considerably, he said.

Garments Exporters Association

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