Coimbatore textile sector sough 3 percent export incentive for cotton yarn

Coimbatore textile industry has sought three percent export incentive, which is now available to other textile products, for cotton yarn too. If three percent export incentive is available for cotton yarn, textile mills will be able to tap new markets.

At a meeting with Union Commerce Minister Nirmala Sitharaman here recently, Southern India Mills’ Association chairman M. Senthil Kumar said cotton yarn exports used to be about 140 million kg a month at the beginning of 2014. Since then it has fallen to less than 100 million kg a month now. One of the main reasons is the cotton policy announced by China.

Further, Pakistan has imposed 10 percent import duty on cotton yarn. The industry will have to export at least 150 million kg of yarn a month and with decline in demand from China, it has to look at other markets.

The SIMA also appealed to the Government to conclude Free Trade Agreement with European Union soon as EU accounts for 40 percent of textile exports. Countries such as Vietnam, Cambodia, Bangladesh and Pakistan enjoy duty free access, while Indian textiles attract four per cent to 16 percent duty in the EU.

While, the delegation from Indian Texpreneurs Federation, which met the Union Minister has sought duty rationalization for manmade fibre. The Centre also should introduce a special debt restructuring scheme for the small and medium-scale enterprises in textiles as it will enable the industry realize 300 billion dollars worth exports in the next 10 years.

Also global textile fair should be organized every year which is facilitate overseas buyers and suppliers meet enabling to source their requirements.