| Date: |
03-11-2015 |
| Subject: |
MEIS benefit to give fillip to MMF export from Surat |
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SURAT: Export of man-made fabrics (MMF) from Surat is expected to increase in the coming days following extension of duty benefit under Merchandise Exports from India Scheme (MEIS) by the central government.
The ministry of commerce had recently extended the duty benefit under the MEIS to boost competitiveness of Indian export and enhance shipments.
The directorate general of foreign trade (DGFT) has listed out around 2,228 items, including man-made fabric for direct duty benefit of two per cent on export shipments.
Industry sources said polyester fabric export was highly competitive due to competition from China in the international market. However, industry bodies were demanding duty benefit under MEIS to sustain export of MMF fabric.
Synthetic and Rayon Textile Export Promotion Council sources said annual export of MMF fabric from the city is pegged at Rs 1,200 crore. In 2014-15, the export had decreased by almost 15 per cent due to dwindling demand and cut-throat price competition in the international market.
Pramod Chaudhary, a textile unit owner, said, "The two per cent duty benefit under MEIS will spur polyester fabric export from the country. Pakistan, the United Arab Emirates, the USA, Bangladesh and Sri Lanka are key markets for polyester fabric manufactured in the city. This time around we will see increase in shipments from Surat."
Surat manufactures around three crore metre of fabric per day. The annual production of polyester fabric and finished fabric is pegged at Rs 35,000 crore.
Southern Gujarat Chamber of Commerce and Industry's (SGtextile committee chairman Devkishan Manghani said, "SGCCI was lobbying with the central government for the last few years to include MMF sector under MEIS benefit. This will boost export of MMF fabric, not only from Surat, but also from Mumbai and southern India."
Source : timesofindia.indiatimes.com
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