TEA welcomes removal of duty drawback rate on cotton yarn.

Shri.A.Sakthivel, TEA President said that with all the measures taken so far, the cotton yarn prices may come down by Rs.15/- per Kg.

Shri.Sakthivel thanked the Hon’ble Union Minister of Textiles for his continuous efforts with various measures for reduction of the cotton yarn prices in the domestic market.

Shri.Sakthivel pointed out that in the amendments made in the Finance Bill 2010, yesterday, (29th April 2010) in order to meet any future demand, the Government has decided to increase the statutory export duty on Raw Cotton to Rs.10,000/- per Metric tonne, while maintaining the effective rate of Rs.2,500/- per Metric tonne at the current level. By this enhancement, the Government could increase the export duty on cotton yarn upto Rs.10,000/- per Metric Tonne whenever need arises.

Shri.Sakthivel said as the cotton rate has not drastically come down, it is a time to implement the export duty at Rs.10,000/- per Metric Tonne so that, there will not be any attractive for cotton export and the concerned measure will straight away help to reduce the cotton prices immediately.

Shri.Sakthivel requested Thriu.Dayanidh Maran, Hon’ble Union Minister of Textiles to take up this issue and help to implement immediately which will ultimately trigger for the reduction of cotton yarn prices.

Source : fibre2fashion.com