The newly-introduced Merchandise Exports from India Scheme has allowed duty credit scrip of two percent, three percent and five percent to exports of notified products to specific countries but does not include export of products such as the dyed and printed cotton fabric and made ups to African countries.

According to R.K. Dalmia, chairman of the Cotton Textiles Export Promotion Council, export of value-added cotton textile products such as dyed and printed fabrics and made-ups to African countries will be affected as the new foreign trade policy has removed the benefits extended so far on these exports.

The early foreign trade policy granted duty credit scrips at four percent of the FOB value of exports in general for export of cotton fabrics and made ups to many African countries.

The share of textile exports to African region is less than five percent now and the potential is huge. The products usually exported to the African countries are the materials that are used in the traditional dresses and are manufactured by small and medium-scale units here. These units need support to tap the potential in the African market.