Export incentives for cotton yarn restored
Updated: Jan 24, 2014 03:01:28pm
Jan 24 (KNN) The export of cotton yarn from India which is the world’s second biggest raw cotton exporters, has been made eligible for benefits under Incremental Export Incentivization Scheme for the entire financial year 2013-14.
Incentives for raw cotton and yarn exports were withdrawn in September.
“Export of Cotton Yarn is made eligible for benefits under Incremental Export Incentivisation Scheme for the entire financial year 2013-14,” said a notification by the Directorate General of Foreign Trade (DGFT).
The scheme will benefit the cotton export with the rising demand from the west and neighbouring countries like Bangladesh and China.
Hailing the decision, Secretary General of Confederation of Indian Textile Industry, D K Nair told KNN, “The industry is very happy with the decision. In September, when the government withdrew the incentive we had urged them not to do so. They did not give any reason then for withdrawing the scheme; neither did they give any reason for restoring the incentive.
“The cotton export is now likely to go up by at least 10 per cent. The MSME sector will benefit a lot as they contribute almost 12 per cent to their production,” he added.
Cotton is one of the principal crops of India and is the major raw material for domestic textile industry. India is self-sufficient in cotton which provides the Indian textile industry a competitive edge worldwide in terms of low cost of raw material.
According to a study report by research firm CARE Research, India's cotton production is likely to go up on the account of good monsoon, coupled with an announced hike in the MSP.
The country's cotton production is expected to be around 378.75 lakh bales, while consumption is likely to be around 300 lakh bales this year.
The cotton textile sector plays a significant role in the country's economy, contributing approximately 4 per cent to the GDP and 17 per cent to the total exports.
The domestic demand of cotton yarn is primarily driven by the growth in consumption of readymade garments and home textiles on account of rising income levels, growing organized retail segment and rising consumer class.
In 2012-13, cotton yarn production increased primarily on account of strong demand from exports coupled with modest demand from the domestic user industries i.e. apparel and home textiles. China imports a substantial amount of cotton yarn from India, as the cost of production in that country is higher, owing to high cotton prices.
According to the report, cotton yarn exports from India grew from 615 million kg in 2006-07 to 1,107 million kg in 2012-13. (KNN/SD)
Incentives for raw cotton and yarn exports were withdrawn in September.
“Export of Cotton Yarn is made eligible for benefits under Incremental Export Incentivisation Scheme for the entire financial year 2013-14,” said a notification by the Directorate General of Foreign Trade (DGFT).
The scheme will benefit the cotton export with the rising demand from the west and neighbouring countries like Bangladesh and China.
Hailing the decision, Secretary General of Confederation of Indian Textile Industry, D K Nair told KNN, “The industry is very happy with the decision. In September, when the government withdrew the incentive we had urged them not to do so. They did not give any reason then for withdrawing the scheme; neither did they give any reason for restoring the incentive.
“The cotton export is now likely to go up by at least 10 per cent. The MSME sector will benefit a lot as they contribute almost 12 per cent to their production,” he added.
Cotton is one of the principal crops of India and is the major raw material for domestic textile industry. India is self-sufficient in cotton which provides the Indian textile industry a competitive edge worldwide in terms of low cost of raw material.
According to a study report by research firm CARE Research, India's cotton production is likely to go up on the account of good monsoon, coupled with an announced hike in the MSP.
The country's cotton production is expected to be around 378.75 lakh bales, while consumption is likely to be around 300 lakh bales this year.
The cotton textile sector plays a significant role in the country's economy, contributing approximately 4 per cent to the GDP and 17 per cent to the total exports.
The domestic demand of cotton yarn is primarily driven by the growth in consumption of readymade garments and home textiles on account of rising income levels, growing organized retail segment and rising consumer class.
In 2012-13, cotton yarn production increased primarily on account of strong demand from exports coupled with modest demand from the domestic user industries i.e. apparel and home textiles. China imports a substantial amount of cotton yarn from India, as the cost of production in that country is higher, owing to high cotton prices.
According to the report, cotton yarn exports from India grew from 615 million kg in 2006-07 to 1,107 million kg in 2012-13. (KNN/SD)
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