There have been newspaper reports on the Textile Mills stopping production for one day on 23.05.2011 to protest the withdrawal of incentives and curbs on cotton yarn exports. Of the 3300 registered textile mills, 1998 mills were reported to have participated in the closure.

Cotton yarns Exports are already on OGL w.e.f. 1st April 2011; there is no curb on yarn exports presently.

Last year in the backdrop of the supply line disruptions and steep increase in the process of cotton and cotton yarn, Government had initiated a number of steps for ensuring raw materials security for the Textiles industry. Keeping in mind the need to balance the interests of all stake holders across the value chain, a multipronged approach was adopted which included inter-alia, capping of cotton exports at 55 lac bales for cotton season 2010 – 11; and permitting yarn exports of 720 million kgs for the year 2010-11. The yarn exports are permitted throughout the year; there was no ban, virtual or otherwise as claimed.

To ensure the viability of the handloom weavers, power loom weavers and garment industry in the face of highest ever price rise in decades in 2010-11, Government had capped cotton yarn exports at 720 million kgs for financial year 2010-11 keeping in view the domestic consumption. Even the 720 million kgs of yarn exports permitted would be the highest ever export performance achieved by the Indian spinning industry, representing a 22% increase in comparison to 589 million kgs in 2009 – 10 and 556 million kgs in 2008-09.

The policy initiatives undertaken have yielded results, with the prices of both the cotton and cotton yarn achieving some degree of stability now.

Source – Press Release by Ministry of Textiles

More Under Income Tax

Posted Under

Category : Income Tax (25028)
Type : News (12550)

Leave a Reply

Your email address will not be published. Required fields are marked *