Cotton export levy to rein in rising prices.

The Government of India anticipates that, duty imposition of Rs 2,500 per ton on the export of raw cotton will control growing prices of raw cotton in domestic market. This decision was taken in a meeting, chaired by Finance Minister Mr. Pranab Mukherjee, last week and will be imposed for a period of six months.

Owing to the abrupt growth in cotton fibre prices, the domestic and export, textile and apparel sector as been pitching for restrictions on cotton export. The Apparel Export Promotion Council (AEPC) has appreciated the steps taken, in this direction, by the Textile Minister Mr. Dayanidhi Maran.

Suspension of 7.5 percent duty concession on cotton yarn exports under the Duty Entitlement Pass Book (DEPB) scheme will reduce fabric prices to their realistic levels, said AEPC.

It added by saying that, moreover, the government has also imposed a 3 percent duty on export of cotton waste, put restrictions on exports of cotton yarn, by making it mandatory to register with the Textile Commissioners Office in Mumbai.

The textile ministry has also taken a decision to maintain a carry-forward stock of about 5 million bales of raw cotton at the beginning of the next cotton season starting in October 2010.

Source : Fibre2fashion