\nEconomic Times, India –
\n NEW DELHI: The Centre on Tuesday announced a 5% duty incentive on export of raw cotton by including the fiber commodity in the Vishesh Krishi and
\nGram Udyog Yojana.
\n
\n \u201cThe raw cotton shall be entitled for duty credit scrip on exports made with effect from April 1, 2014,\u201d the DGFT (directorate general of foreign trade) said in a notice. The benefit is available on exports made till June 30.
\nThe scheme has been launched for the promotion of exports mainly of farm produces, including value-added products. However, the move has come under sharp criticism from both the textile industry and the apex body of exporters, FIEO, which said the domestic industry would lose its competitive edge to global players.<\/p>\n
\u201cThis will be tantamount to subsidising the textile industry of Pakistan, Bangladesh, Indonesia and China, which are our major competitors in the global market as our cotton will now be available to them at lower price,\u201d Confederation of Indian Textile Industry (CITI) said. \u201cFunds that are being given for export incentive could have been used more appropriately to reduce the price of procured cotton for Indian consumers,\u201d CITI secretary general DK Nair said.<\/p>\n
The FIEO said the move would increase the prices of raw cotton in the domestic market. \u201cIt will also enhance the competition because our competing countries would be getting raw cotton at lower prices after factoring in the benefit,\u201d FIEO president A Sakthivel said.<\/p>\n
Terming the move as a political decision, trade expert Arun Goyal said it has been done to benefit cotton farmers of Maharashtra. \u201cThe move will hit the garment industry and fabric exporters severely,\u201d he said. Cotton production in the country is likely to decline to 29 million bales this year, compared with 32.2 million bales estimated in October 2014.
\nAccording to an industry estimate, India had exported about 8.5 million bales of cotton last year. The country\u2019s domestic consumption touched 24.1 million tonnes last year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Economic Times, India – NEW DELHI: The Centre on Tuesday announced a 5% duty incentive on export of raw cotton by including the fiber commodity in the Vishesh Krishi and Gram Udyog Yojana.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\n