The Cotton Textiles Export Promotion Council (TEXPROCIL) has hailed the raise in the rates of the merchandise exports from India scheme (MEIS) and rebate on state levies (RoSL), saying the step will benefit made-ups sector exporters facing tough times. It urged for inclusion of cotton yarn under MEIS and raising the same on cotton fabrics to 4 per cent.
Texprocil chairman Ujwal Lahoti, in a press release, said, made-ups is a labour intensive sector and any encouragement will have a positive impact on the entire value chain of cotton textiles.
While every other segment in the textile value chain, including man-made fibre spun yarn, have been provided with the MEIS benefits, cotton yarn has been excluded for some inexplicable reason, even though it was included in the Focus Market Scheme (FMS), Incremental Export Incentive Scheme under the earlier Foreign Trade Policy, Lahori said.
Withdrawal of the export incentives for cotton yarn has reduced India’s competitive edge as Indian prices have increased by 5-6 per cent. Increase in exports of cotton yarn will benefit not only the spinning sector but also the cotton farmers and the value added segments of fabrics and made-ups and garment, he added.