Tirupur exporters want hike in duty drawback rates
Updated: Apr 04, 2013 05:16:16pm
New Delhi, Apr 4 (KNN) Tirupur Exporters have requested the Duty Drawback Committee for 2013-14, set up by the Ministry of Finance to consider increasing Duty Drawback rates from the existing rate of 7.9 per cent to an additional 3 per cent.
Duty drawback is the rebate tax or duty paid for raw material used for manufacture of items meant for exports.
“We requested for 3 per cent more,” said Chairman of Apparel Export Promotion Council (AEPC) A Sakthivel, speaking on behalf of the Tirupur Exporters Association (TEA).
The Association made a presentation to the Drawback Committee which yesterday visited Tirupur the knitwear hub of India in Tamil Nadu.
Members of the Drawback Committee consisted of Member Planning Commission and Chairman, Drawback Committee Saumitra Chaudhuri, Member, DBK Committee and former Textile Secretary, S B Mohapatra, T R Rustagi, Gautam Ray and Vinod Kumar Agarwal.
Sakthivel who is also the President of the Tirupur Exporters Association noted the decline of Knitwear exports in 2012 – 2013 owing to recession in the European Union (EU) market and less off take in the US market coupled with other adverse factors.
“The concern is European market, which used to contribute around 50 per cent to the industry,” said Sakthivel.
Expressing concern about the increase in price of dyes, chemicals and other inputs, he said the price hike in the cost of production could not be passed on further to the garment price, due to the competition in the International market. The average unit value realisation of the garment has now come down by 5.66 per cent.
The Drawback committee also visited Common Effluent Treatment Plant (CETP) at Arulpuram to witness how zero discharge in effluent had been achieved by Tirupur, which is the first of its kind in the world. Various complicated procedures involved in the operation of CETP were also observed first-hand.
Other participants including past Chairman, Apparel Exports Promotion Council Premal Udani, and Vice Chairman, Western region, AEPC Ashok Rajani and a few executive committee members of TEA also conveyed the need to increase drawback rates. (KNN)
Duty drawback is the rebate tax or duty paid for raw material used for manufacture of items meant for exports.
“We requested for 3 per cent more,” said Chairman of Apparel Export Promotion Council (AEPC) A Sakthivel, speaking on behalf of the Tirupur Exporters Association (TEA).
The Association made a presentation to the Drawback Committee which yesterday visited Tirupur the knitwear hub of India in Tamil Nadu.
Members of the Drawback Committee consisted of Member Planning Commission and Chairman, Drawback Committee Saumitra Chaudhuri, Member, DBK Committee and former Textile Secretary, S B Mohapatra, T R Rustagi, Gautam Ray and Vinod Kumar Agarwal.
Sakthivel who is also the President of the Tirupur Exporters Association noted the decline of Knitwear exports in 2012 – 2013 owing to recession in the European Union (EU) market and less off take in the US market coupled with other adverse factors.
“The concern is European market, which used to contribute around 50 per cent to the industry,” said Sakthivel.
Expressing concern about the increase in price of dyes, chemicals and other inputs, he said the price hike in the cost of production could not be passed on further to the garment price, due to the competition in the International market. The average unit value realisation of the garment has now come down by 5.66 per cent.
The Drawback committee also visited Common Effluent Treatment Plant (CETP) at Arulpuram to witness how zero discharge in effluent had been achieved by Tirupur, which is the first of its kind in the world. Various complicated procedures involved in the operation of CETP were also observed first-hand.
Other participants including past Chairman, Apparel Exports Promotion Council Premal Udani, and Vice Chairman, Western region, AEPC Ashok Rajani and a few executive committee members of TEA also conveyed the need to increase drawback rates. (KNN)
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