Coimbatore: Dr K.V.Srinivasan Chairman of Textiles Export Promotion Council (TEXPROCIL) said that the exports of the cotton yarn from India in the first quarter of April-June 2019 have fallen by a steep 33%.
Coimbatore: Dr K.V.Srinivasan Chairman of Textiles Export Promotion Council (TEXPROCIL) said that the exports of the cotton yarn from India in the first quarter of April-June 2019 have fallen by a steep 33%.
The cotton yarn sector has been one of the pillars of the Indian textile industry and is also highly modernized and technology-driven and also provides sustainable income to farmers.
Meanwhile, the export of cotton yarn has decreased from 338 million kg in April-June 2018 to 226 million Kgs in April-June 2019. He also said that the month on month decline from 90 million kgs in April 2019 to 77 million kgs in May to 59 million kgs in June is a matter of deep concern.
He also noted that the level of 59 million kgs is the lowest monthly export in the last five years.
He asserted that the steep fall has been caused by many reasons including the decline in exports to leading export markets like China, Bangladesh, South Korea and the duty-free access given for the import of cotton yarn by China to countries like Pakistan and Vietnam from 1st April 2019.
Dr K.V.Srinivasan pointed out that even though the cotton yarn is a value-added product, it has been excluded from the export benefits like interest subvention, MEIS and the ROSCTL schemes.
He added that the large scale investment in the spinning sector and sluggish demand in the domestic markets, exports are the only avenue to ensure uninterrupted production and capacity utilization.
Dr K.V.Srinivasan, Chairman, Texprocil appealed the Govt to include cotton yarn in the interest subvention scheme and also to rebate the embedded taxes like Agricultural Cess, Mandi Tax, Power and Fuel Surcharge which incur in the production process.
He also stressed that the ROSCTL Scheme which rebates these levies should be extended to cotton yarn sector at the earliest.
"This will ensure that only products are exported and not taxes. And in case the current trends of declining exports continue in the next quarter, it will lead to the closure of several spinning units in the near future, resulting in the layoffs", he said.
The cotton yarn sector has been one of the pillars of the Indian textile industry and is also highly modernized and technology-driven and also provides sustainable income to farmers.
Meanwhile, the export of cotton yarn has decreased from 338 million kg in April-June 2018 to 226 million Kgs in April-June 2019. He also said that the month on month decline from 90 million kgs in April 2019 to 77 million kgs in May to 59 million kgs in June is a matter of deep concern.
He also noted that the level of 59 million kgs is the lowest monthly export in the last five years.
He asserted that the steep fall has been caused by many reasons including the decline in exports to leading export markets like China, Bangladesh, South Korea and the duty-free access given for the import of cotton yarn by China to countries like Pakistan and Vietnam from 1st April 2019.
Dr K.V.Srinivasan pointed out that even though the cotton yarn is a value-added product, it has been excluded from the export benefits like interest subvention, MEIS and the ROSCTL schemes.
He added that the large scale investment in the spinning sector and sluggish demand in the domestic markets, exports are the only avenue to ensure uninterrupted production and capacity utilization.
Dr K.V.Srinivasan, Chairman, Texprocil appealed the Govt to include cotton yarn in the interest subvention scheme and also to rebate the embedded taxes like Agricultural Cess, Mandi Tax, Power and Fuel Surcharge which incur in the production process.
He also stressed that the ROSCTL Scheme which rebates these levies should be extended to cotton yarn sector at the earliest.
"This will ensure that only products are exported and not taxes. And in case the current trends of declining exports continue in the next quarter, it will lead to the closure of several spinning units in the near future, resulting in the layoffs", he said.