Cotton export duty to check rising prices.

The government is hoping a Rs 2,500-per-tonne duty on raw cotton exports will neutralise rising prices in the domestic market while helping to salvage India’s presence in the international market. The Central Board of Excise and Customs will likely impose the duty which has endured a sharp rise in prices since October 2009.

The measure follows the decision by a high-level meeting chaired by finance minister Pranab Mukherjee last week. The export duty had been levied for six months, said a source in the textile ministry. The domestic textile industry has been pitching for cotton export restrictions in the wake of steep rise in prices of the natural fibre.

“We appreciate the efforts made by textile minister Dayanidhi Maran in this regard,” reads a written statement

issued by the Apparel Export Promotion Council (AEPC). “The government’s move to suspend the duty concession.

Source : indianexpress.com