| Date: |
24-01-2014 |
| Subject: |
Government restores export incentives for cotton yarn |
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MUMBAI: India, the world's second-biggest raw cotton export, has restored an incentive scheme for cotton yarn exports, an official order said on Thursday.
The Directorate General of Foreign Trade (DGFT), a unit of the trade ministry, gave no reason for restoring export benefits for yarn, a value-added product used by textile mills.
Incentives for raw cotton and yarn exports were withdrawn in September.
"Those who will export more than last year will be eligible for a 2 percent incremental export benefit," said D. K. Nair, secretary general of the Confederation of Indian Textile Industry.
Nair said yarn exports could rise 10 percent in 2013/14 due to increased demand from China as it plans to end a raw cotton stockpiling programme to support domestic growers.
Traders forecast India will ship 8-9 million bales of raw cotton in the crop year to September, down from 10.1 million bales in 2012/13. One bale equals 170 kg.
Source : economictimes.indiatimes.com
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